Dogecoin and Shiba Inu fall behind in market as memecoins struggle against bitcoin.

Recent market trends have shown a decline in the performance of meme coins such as Dogecoin and Shiba Inu. Despite signs of accumulation by larger holders, these meme coins have been facing challenges due to rising volume and tightening chart structures. Traders have been rotating away from higher-beta exposures, causing assets like Ether (ETH) to hold firm while coins like DOGE and SHIB have been struggling to keep up. This has led to a widening performance gap within the market.

Even though there have been some improvements in the market structure for Shiba Inu, with the launch of regulated SHIB futures contracts by Coinbase linked to its 1,000-token index, the short-term price action for meme coins has been mainly influenced by technical factors rather than regulatory developments.

Technical analysis shows that Dogecoin fell by 3.3% and remained capped below a descending trendline. Trading volume increased significantly, indicating active repositioning in the market. The coin is currently trapped in a descending triangle around the $0.13 psychological zone, with former support turning into resistance. Shiba Inu exhibited a similar pattern, tracking DOGE lower during U.S. hours and failing to reclaim short-term resistance levels.

In terms of price action, DOGE and SHIB have been trading within narrow ranges, with DOGE briefly stabilizing near $0.1258 before settling around $0.1262. Both coins have struggled to sustain upward momentum, with sellers re-emerging quickly above $0.13. This synchronized price action suggests that meme coins are currently being traded as a single risk group rather than based on individual token catalysts.

Traders should take note that DOGE and SHIB are underperforming compared to the broader market and assets like ETH, indicating a trend of de-risking in speculative areas of the crypto market. To improve their positions, DOGE needs to reclaim $0.13 with sustained volume, while SHIB must regain prior consolidation levels to shift momentum. Despite signs of whale accumulation in DOGE, short-term conviction remains low, and until key levels are broken and reclaimed, rallies are likely to face selling pressure.

Overall, the recent struggles of meme coins like Dogecoin and Shiba Inu in the market highlight the challenges faced by these digital assets amidst changing market dynamics and investor sentiment. Trader should closely monitor these trends to make informed decisions in the volatile crypto market.