Meme coin market divergence: Shiba Inu drops below support, Dogecoin searches for bottom direction

In the context of liquidity tightening at the end of the year, meme coins are showing obvious market differentiation characteristics. According to the latest data, Dogecoin is currently quoted at $0.14, up 1.22% in 24 hours, while Shiba Inu meme coin remains in a more fragile technical state. These two high-beta assets are reflecting broader market risk sentiment changes—Bitcoin’s rebound momentum is waning, and Ethereum remains weak, all exerting pressure on meme coins.

Fundamental Reasons for Market Differentiation

The current dilemma of meme coins is not due to a lack of narrative support but because the entire market is in a technical-driven phase. Due to year-end institutional position adjustments and retail investors’ wait-and-see attitude, funds are withdrawing from high-risk assets. In this environment, high-volatility assets like DOGE and SHIB are among the first to be sold off.

Bitcoin’s rebound lacks follow-through strength, breaking market upward expectations. Meanwhile, Ethereum’s continued weakness further deteriorates the liquidity environment for risk assets, causing meme coins to fluctuate near technical levels rather than being actively allocated hotspots. Weak market depth amplifies volatility, and position clearing near obvious technical resistance levels creates pressure.

DOGE’s Dilemma: Holding Key Support to Avoid Collapse

Dogecoin is currently in a tightening consolidation zone but shows hidden bearish tendencies. The high trading volume rejection near $0.1260–$0.1264 indicates that sellers remain highly alert during rebounds. The key for the current price is whether it can stay above $0.122.

Support and Resistance Status:

• Demand Zone: $0.1208–$0.1220 is the current main support structure, preventing further price drops
• Supply Pressure: Repeated failures around high trading volume at $0.1264 form a clear short-term resistance
• Risk Warning: If it breaks below $0.122, there is a risk of accelerating downward movement toward $0.1180 and lower

To truly reverse the short-term downtrend, DOGE needs to recover the critical level of $0.133, which would force short sellers to cover their positions. Until then, the market will continue to oscillate near the bottom, and each rebound could become a selling opportunity.

Shiba Inu’s Breakdown: Losing the Key Bottom

Shiba Inu’s technical pattern is more severe. The price has broken below the key bottom of $0.00000717–$0.00000718, confirming the formation of a downtrend channel. This means the bulls have lost an important line of defense.

Analysis of Subsequent Support Levels:

• First Support: $0.000007145 is the next critical mark; losing it would open the door to deeper corrections
• Secondary Support: Around $0.00000707 is the “must hold” level; otherwise, further downside is likely
• Rebound Resistance: Even if it rebounds, it may face resistance in the $0.00000722–$0.00000725 range unless trading volume continues to improve

The weakness of SHIB stems from structural breakdown. Selling accelerates during the decline from resistance to support, indicating the market is not absorbing selectively but is instead experiencing persistent capitulation.

Trading Insights in the Technical Market

This is a technically driven market phase, where headlines and narratives are greatly diminished. For participants, the key is to monitor two core levels:

DOGE’s Focus: $0.122 is the critical line. Staying above it allows the market to continue building a bottom; losing this level will quickly open the downside space as technical stop-losses trigger below the range. Only when the price can recover above $0.1264 and break above $0.133 will a rebound have a chance to become a genuine upward start.

SHIB’s Focus: The bulls must regain the $0.00000717–$0.00000718 range to neutralize the downtrend; otherwise, $0.000007145 becomes the “last fortress.” If this level is lost, further decline toward $0.00000707 is highly probable.

Core Variables for Market Outlook

Ultimately, the direction of meme coins will still be determined by the performance of larger assets. If Bitcoin cannot sustain its rebound and Ethereum remains weak, meme coins are unlikely to experience a sharp, one-time decline but will instead trigger continuous selling through repeated failed rebounds.

In simplified terms: traders only need to watch whether DOGE stays above $0.122 and whether SHIB can regain its broken bottom. These two levels will clearly tell the market whether it is building a long-term bottom or entering another phase of decline.