Dogecoin and Shiba Inu, the world’s two largest meme coins, have seen their prices tumble over 10% in the past few days.
Both coins have experienced two consecutive bearish daily closes and appear to be on track for a third today.
However, while dog-themed cryptos are suffering, one relative newcomer, Sponge (SPONGE), is making waves and has pumped a whopping 220% in the past week.
Dogecoin Price Slumps as Investor Hype Fades
Dogecoin is trading around the $0.073 level after reaching a high of $0.082 on Saturday.
The coin rode a massive wave of retail investor hype throughout October to post incredible gains, becoming one of the biggest positive movers among established meme coins.
However, in the past three days, interest has cooled significantly, with DOGE struggling to maintain itself above $0.080.
Lacking significant catalysts or developments from the core development team, DOGE’s value is heavily influenced by investor sentiment.
Although daily spot trading volume remains elevated at $727 million, much of this can be attributed to speculative traders closing their positions and taking profits.
While diehard DOGE community members remain committed, many retail investors believe the coin’s bull run has ended.
The DOGE price is now at a critical juncture between key support and resistance levels on the daily chart – meaning the next few days could decide the coin’s fate in the final weeks of 2023.
Shiba Inu Falls From Highs as Traders Take Profits
Shiba Inu has also experienced a dramatic comedown in the past few days, now trading around the $0.0000084 level.
After posting a significant upward wick on Saturday, SHIB has dropped over 12%, erasing a considerable portion of its gains from the previous uptrend.
This long wick suggests substantial selling pressure at higher prices, indicating that traders may have been taking profits after the recent rally.
Supporting this is data from the Shiba Inu Fear & Greed Index, which has dropped to 46% in the past few days, placing it firmly in “Neutral” territory.
This decline shows that the positivity seen throughout October is now being tempered by caution among investors, reflecting a more balanced sentiment.
However, the recently launched magazine “The SHIB” offers a new avenue for engaging the Shiba Inu community.
For its second edition, the magazine’s NFT giveaway sparked excitement, featuring boxing legend Manny Pacquiao as the cover star.
Initiatives like this magazine could help maintain community engagement during this period of declining prices, providing a ray of hope to SHIB holders.
Sponge Token Defies Meme Coin Slump with Staking & Airdrop Momentum
While Dogecoin and Shiba Inu have stalled after their massive run-ups, one meme coin is starting to make waves.
Sponge (SPONGE), inspired by the famous SpongeBob SquarePants cartoon, has pumped over 220% amid a flurry of positive developments in the past week.
The Ethereum-based token recently concluded a competitive airdrop event, distributing $100,000 worth of SPONGE tokens to active community members.
This airdrop required participants to complete various social media tasks and accumulate trading volume on Uniswap to earn points for redeemable token rewards.
The event was a huge success, attracting over 20,000 eager SPONGE fans who competed for prizes.
On the heels of this community-building effort, SPONGE launched its long-awaited staking protocol on November 1.
This feature allows SPONGE holders to lock up their tokens in return for rewards, providing another incentive for long-term holding.
Between the airdrop hype and staking rollout, daily spot trading volume has rocketed over 138% to $3.1 million.
With its dedicated community and engaging tactics, Sponge is proving that meme coins can still deliver gains, even while mainstream names like DOGE and SHIB struggle.
Although the token’s price has pulled back slightly from yesterday’s high, the fundamentals remain the same – with many in the Sponge Telegram community believing now could be the ideal time to acquire SPONGE at a lower price.