Dogecoin crashes, Shiba Inu holds on... Why are meme coin market directions diverging?

▲ Dogecoin (DOGE), Shiba Inu (SHIB)

The trends of Dogecoin (DOGE) and Shiba Inu (SHIB) in the meme coin market have distinctly diverged. Dogecoin recently fell by 8% over the past 5 days, adjusting to $0.10820, while Shiba Inu is holding its ground within a narrow price channel around $0.00000645, creating a separate trend.

U.Today reported on May 10 (local time) that Dogecoin is experiencing a strong bearish shock, based on TradingView's DOGE/USDT daily chart. On the chart, Dogecoin quickly fell below its long-term moving average, the 200-day moving average of $0.12231, and even broke below its local moving average. This was interpreted as speculative funds exiting Dogecoin after the April overheating.

In contrast, Shiba Inu is showing isolated movement, different from Dogecoin. Shiba Inu is maintaining a narrowly compressed trend around $0.00000645, appearing to defend against selling pressure from pushing local lows further down. U.Today assessed this not as a sell-off but as a technical accumulation trend.

The key reason Shiba Inu is holding on is the horizontal volume concentration zone. While Dogecoin continues to make new lows in May, Shiba Inu is maintaining a thick horizontal volume zone within the Visible Range Volume Profile (VRVP). Its Relative Strength Index (RSI) also remains in a range closer to neutral to bullish, showing a difference from Dogecoin's RSI trend, which weakens with price. Dogecoin's chart showed an RSI of 59.59, but it continues to decline with the falling price.

Differences also appeared in fundamental backgrounds. U.Today reported that Dogecoin, as an asset with an inflationary structure, is facing pressure from speculative funds exiting after the April overheating, while Shiba Inu is supported by institutional-related expectations. Specifically, the expectation of inclusion in multi-asset spot ETFs, including products related to T. Rowe Price and Coinbase 50, was cited as a factor preventing Shiba Inu's downside.

Unlike Dogecoin, which carries the risk of falling to its next major support zone of $0.09764, Shiba Inu was assessed as having a structure that accumulates energy through narrow sideways movement. U.Today stated that if Shiba Inu breaks through the psychological resistance level of $0.00000700, a dramatic rebound path could open, in which case Shiba Inu could solidify its status as an independent asset, not subservient to Dogecoin.

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