As Bitcoin nears $60,000, risk aversion intensifies, putting more pressure on the more volatile meme coin sector. Dogecoin and Shiba Inu led the decline among major tokens, with selling pressure concentrated primarily after prices broke through support levels rather than during rebounds.
Selling pressure was concentrated during the decline phase.
According to CoinDesk, citing market data, the price of DOGE fell from $0.0891 to $0.0830, breaking below the upward channel maintained since February. SHIB, meanwhile, dropped from $0.000004997 to $0.000004630, breaching support near $0.000004780.
Both tokens experienced larger volume spikes during their declines, indicating that funds were primarily exiting the market rather than buying on dips. This type of price action typically suggests that short-term sellers still dominate.
Futures positions declined in tandem.
The report noted that as Bitcoin slid toward $60,000, a wider liquidation occurred in the altcoin and meme coin markets. Derivatives traders also turned defensive, with DOGE futures open interest declining and SHIB open interest hovering near the lows of this cycle.
- DOGE fell to $0.0830
- SHIB fell to $0.000004630.
- Bitcoin once approached the $60,000 mark.
This reflects that highly leveraged funds are reducing their risk exposure. Compared to Bitcoin, more volatile tokens tend to face selling pressure earlier, and therefore experience larger declines when market sentiment weakens.
Exchange outflows failed to stop the decline
It's worth noting that both DOGE and SHIB saw significant outflows from exchanges. This type of data is usually seen as a signal that holders are shifting towards hoarding, but this time it didn't provide any significant support.
The report suggests that this indicates the market is currently more focused on macroeconomic pressures and short-term momentum than on signs of medium- to long-term accumulation. While some momentum indicators are approaching oversold territory, neither token has yet shown sufficiently clear signs of stabilization.
The market will continue to focus on whether Bitcoin can hold above $60,000. If mainstream assets continue to weaken, the meme coin sector, with its higher risk appetite, may face even greater selling pressure.
