Will Shiba Inu Overtake Dogecoin Price in February 2024?

Shiba Inu and Dogecoin stand as the top two memecoins with market capitalizations of $5.3 billion and $11.4 billion, respectively. Since their inception, the fortunes of both ecosystems have remained closely interlinked. In January, SHIB and DOGE posted strikingly identical price performances. The price chart shows that both assets shed 17% in value during the month as of Jan. 26. However, Dogecoin miners’ and mining pools’ recent trading activity could lead to a potential decline in DOGE price compared to SHIB in February.

Due to positive sentiment surrounding the Bitcoin spot ETF approval, Dogecoin recorded double-digit price gains in Q4 last year. However, as many investors bought in on the hype, on-chain data indicates that DOGE miners had capitalized on the crypto market rally to secure profits.

As of November 21, the cumulative balance of Dogecoin miners was 4.64 billion DOGE. Now, those balances have dwindled to just 4.35 billion DOGE as of Jan. 28. The figure indicates that the miners have sold off over 290 million DOGE worth about $22.6 million in the last three months.

IntoTheBlock’s miners’ reserves chart shows the real-time balances in the custody of recognized mining pools and mining companies.

With the overall crypto market demand now weakening, the selling trend among miners could have a more pronounced impact on DOGE price in February. This could open the door for SHIB price action to potentially overtake the DOG.

Miners are major stakeholders within any proof of work (PoW) crypto ecosystem. They use computing resources to validate transactions. In return, miners receive block rewards denominated in the native coin. A selling trend among miners is considered a bearish signal for the underlying asset. As miners sell off more newly mined DOGE coins, it dilutes market supply and exerts downward pressure on the price.

Dogecoin Price Forecast

Like the rest of the crypto market, the price of DOGE has experienced considerable bearish price movement over the past month. However, the miners’ $22.6 selling indicates that the bears might gain more ground in the next few weeks. To validate this outlook, bears must first clear the initial support buy-wall around $0.07.

IntoTheBlock’s Global in/out of the money (GIOM) data organizes current DOGE holder wallets based on their historical entry prices. The data reveals that 528,180 addresses obtained 45.6 billion DOGE at an average price of $0.071, marking the largest cluster of current Dogecoin holders. If DOGE holders make frantic purchases to defend their positions, they could overturn the bearish trend. However, a break below the $0.07 support level could bring the price down to $0.06. 

Alternatively, the bulls could control if the Dogecoin price can break above the $0.10 zone. But in this scenario, the 786,930 addresses that bought 14.1 billion DOGE at the average price of $0.095 will likely mount a major resistance. 

Shiba Inu Price Prediction

During the past six weeks, there has been a notable downturn in the daily chart of Shiba Inu price, falling from $0.00001195 to a recent bottom of $0.00000845, indicating a 30% decrease. However, as BTC reclaimed the $40,000 mark, SHIB’s downward trend slowed and began to move sideways above $0.000085. 

This price level, aligning with the 61.8% Fibonacci retracement and an ascending support trendline, indicates a robust zone of interest for buyers to regain momentum. Furthermore, Uphold, the Canadian cryptocurrency exchange, has recently decided to relist nine tokens, including SHIB. This move is anticipated to attract new investors to this memecoin, increasing the likelihood of a bullish reversal. If SHIB successfully surpasses its existing resistance trendline, it would further confirm a recovery trend. 

📣🇨🇦 Alert for our Topper users in Canada. The following tokens have been relisted on Topper and are available via our widget or with any of our Topper partners. 🇨🇦

$ADA, $CSPR, $DOGE, $HBAR, $INJ, $KAS, $SHIB, $XDC and $XLM

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— Uphold (@UpholdInc) January 25, 2024