Dogecoin & Shiba Inu Bloodbath: Meme Coins Sink as Bears Take Control (2025-08-06)
Meme coin mania hits a wall—DOGE and SHIB holders watch gains evaporate as the crypto carnage continues.
Subheader: The meme magic fades
Once-dominant Dogecoin and Shiba Inu are getting mauled in today's crypto selloff. Retail traders who piled in during the hype are now discovering the first rule of meme investing: what goes up must come down—hard.
Subheader: Technicals scream caution
Both coins are breaking through key support levels like a bull in a china shop. The charts don't lie—this isn't a dip, it's a full-blown correction. Even the most delusional moonboys are starting to sweat.
Subheader: Silver lining or dead cat bounce?
Some traders are sniffing around for bargains, betting this is just another shakeout before the next leg up. But let's be real—when your investment thesis hinges on Elon Musk tweets and Kabosu memes, maybe reconsider your life choices.
Closing thought: In crypto, the only thing faster than 100x gains is 100% drawdowns. Just ask the 'Doge to $1' crowd—now busy explaining why HODLing bags at 90% losses is actually genius.
Dog-based memecoins' short bets are rising among traders
CoinGlass long-to-short ratio for DOGE and SHIB reads 0.86 and 0.82, respectively, on Wednesday, the lowest level over a month. The ratio below one suggests bearish sentiment in the market, and traders are betting that the asset price will fall.
DOGE long-to-short ratio chart. Source: CoinGlass
SHIB long-to-short ratio chart. Source: CoinGlass
Another derivatives metric that adds more credence to the bearish thesis is the falling funding rate. The funding rate data for both dog-based memecoin is falling, currently reading 0.0005% for Doge and 0.0001% for SHIB on Wednesday, and is about to slip into negative territory. If the funding rate flips negative, it suggests shorts are paying longs and indicates a bearish outlook, leading to a sharp fall in the memecoins' price.
DOGE funding rate chart. Source: CoinGlass
SHIB funding rate chart. Source: CoinGlass
Dogecoin Price Forecast: DOGE faces rejection from its previously broken trendline
Dogecoin price broke below the ascending trendline (drawn by connecting multiple lows since June 22) on Friday, closing below its 50-day Exponential Moving Average at $0.20. However, DOGE recovered slightly from Sunday to Monday but failed to close above the previously broken trendline and continued its correction on Tuesday. At the time of writing on Wednesday, it extends its decline trading below $0.19.
If DOGE continues its correction, it could extend the decline towards its weekly support at $0.18. A successful close below this level could extend the decline to retest its July 1 low of $0.15.
The Relative Strength Index (RSI) on the daily chart reads 42 below its neutral level of 50 and points downward, indicating strong bearish momentum. The Moving Average Convergence Divergence (MACD) continues to hold its bearish crossover and suggests the continuation of the downward trend.
DOGE/USDT daily chart
However, if DOGE recovers, it could extend the recovery toward its next daily resistance at $0.24.
Shiba Inu Price Forecast: SHIB bears are in control of bearish momentum
Shiba Inu price closed below its 50-day EMA on July 29 and declined 10% in the next four days. However, SHIB recovered slightly from Sunday to Monday but failed to maintain its recovery and continued its decline on Tuesday. At the time of writing on Wednesday, it continues its correction, trading around $0.0000119.
If SHIB continues its downward trend, it could extend the decline toward its next daily support at $0.0000111. A successful close below this support could extend an additional decline toward its June 22 low of $0.0000100.
Like Dogecoin, SHIB’s RSI and MACD support the bearish thesis and downward trend.
SHIB/USDT daily chart
On the other hand, if SHIB recovers and closes above the 50-day EMA on a daily basis, it could extend the recovery toward its next daily resistance at $0.0000136.
