Dogecoin (DOGE) and Shiba Inus (SHIB) price action has been unimpressive over the past 24 hours. This is mainly due to Bitcoin’s strong price correlation with the major meme coins, while the price of the major cryptocurrencies is also falling.

Why Dogecoin and Shiba Inu Prices Are Falling

Dogecoin and Shiba Inu prices have been falling due to their strong positive price correlation with Bitcoin. Facts of the market information platform IntoTheBlock shows that Dogecoin’s price correlation with Bitcoin is currently 0.97, while Shiba Inu’s price correlation with major cryptocurrencies is 0.91.

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This indicates that Dogecoin and Shiba Inu have a strong positive price correlation with Bitcoin. This price correlation between the major meme coins and the flagship crypto is almost at its peak, because the closer the value gets to 1, the stronger the correlation between the two assets in question.

As such, Dogecoin and Shiba Inu prices are currently struggling, as is Bitcoin. The flagship crypto has fallen below $60,000 and is currently at risk of falling below $58,000. On-chain analytics platform Glassnode recently proposed that the bearish price action of Bitcoin (and by extension DOGE and Shiba Inu) is due to the “clear level of uncertainty and indecision among digital asset investors.”

Glassnode further highlighted the weakness in spot demand as investors increase their exposure to risky assets such as Dogecoin and Shiba InuIndeed, these meme coins have seen mixed flows lately, proving that investors are still deciding whether to hold them or not, mainly due to the macroeconomic situation with fears of a possible recession in the US.

In the meantime, Dogecoin and Shiba Inu Whaleswhich are known to have a significant impact on the prices of these meme coins also seem bearish, another reason why their prices are struggling. Data from IntoTheBlock shows that Dogecoin’s large transactions have been stable for a while now, while Shiba Inu’s large transactions have dropped by over 14%.

Price levels to watch out for DOGE and SHIB

Crypto analyst Crypto Daily recently emphasized the psychological price level of $0.1 is one to watch for Dogecoin. The analyst claimed that Dogecoin’s price outlook will remain bullish as long as the meme coin stays above this support level. Crypto Daily added that traders would be willing to bet on a bigger price increase if Dogecoin resistance at $0.11.

Meanwhile, $0.000010 remains a crucial support level for Shiba Inu, given the number of addresses that bought the meme coin at that price level. Data from IntoTheBlock shows that 346,430 addresses bought 132.97 trillion Shiba Inu tokens at an average price of $0.000010. The meme coin could see a wave of selling if it drops below this level as investors look to cut their losses.

Main image created with Dall.E, chart from Tradingview.com