Meme Coin Weakness: Shiba Inu Buying Interest Fades, Dogecoin Oversold

The Shiba Inu (SHIB) cryptocurrency has seen its buying interest fade, raising concerns about potential further declines. This comes after a recent trend showed that meme coins are unlikely to reverse price weakness through on-chain activity alone.

According to blockchain media outlet U.Today, the market is becoming increasingly wary of large-scale selling as hundreds of billions to trillions of SHIB have been moved to centralized exchanges in recent times.

The most notable shift is exchange inflows, which recently rose to about 240 billion tokens. However, this has been met with a corresponding increase in outflows, topping 295 billion tokens. Despite net outflows still being intact, the sudden surge in exchange deposits has sparked concerns that large investors may be preparing to sell.

Investor sentiment is also shrinking quickly, with investors choosing to wait and see rather than try to 'catch a falling knife'. Technical signals are also bearish, as SHIB failed in all major rebound attempts and is now trading below its 50-day, 100-day, and 200-day moving averages.

On the other hand, Dogecoin (DOGE) has entered oversold territory, with its Relative Strength Index (RSI) falling to around 21. This typically signals strong selling pressure, but is also seen as a zone where a technical rebound becomes more likely. The absence of heavy volume during past sharp selloffs is also cited as a factor supporting the possibility of a bottom forming.

Bitcoin (BTC), on the other hand, has fallen to the $59,000 to $60,000 range and is trying to defend that psychological support level. Technical signals remain bearish, with BTC trading below its 50-day, 100-day, and 200-day moving averages. The 50-day exponential moving average acts as a key resistance level, while the 100-day and 200-day moving averages are formed near $69,000 and $76,500, respectively.