How low can DOGE and SHIB go?

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At the time of writing on Tuesday, Dogecoin (DOGE) and Shiba Inu (SHIB) prices were trading in the red, below $0.195 and $0.00000099 respectively, as bearish sentiment strengthened across the market. Both dog-themed meme coins reinforced the cautious outlook, seeing a decline in open interest and an increase in short positions, suggesting traders are positioning for further downside.

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DOGE and SHIB derivatives data show bearish bias

Dogecoin and Shiba Inu derivatives metrics forecast a bearish outlook. CoinGlass futures open interest (OI) for both dog-themed meme coins fell on Saturday to $341.50 million and $173,460, respectively. This decline represents the lowest level since the beginning of April for Dogecoin and the beginning of March for Shiba Inu, indicating a decrease in investor participation and reinforcing weak market sentiment for both meme coins.

DOGE Open Interest Chart. Source: CoinGlass

SHIB Open Interest Chart. Source: CoinGlass

Another derivatives metric that lends further credibility to the bearish thesis is the increasing bearish bets among traders. The CoinGlass long-to-short ratio for DOGE and SHIB on Wednesday reads 0.85 and 0.87, respectively.

Dogecoin long-to-short ratio chart. Source: CoinGlass

Shiba Inu long-to-short ratio chart. Source: CoinGlass

Dogecoin Price Forecast: DOGE aims to hit $0.181 mark

Dogecoin price found support around the weekly level of $0.181 on Friday and gained about 9% over the next three days. At the time of writing on Tuesday, DOGE was trading at around $0.194.

If DOGE continues its correction, it could extend the decline to the weekly support at $0.181.

The Relative Strength Index (RSI) on the daily chart reads 40, below the neutral level of 50, indicating increasing bearish momentum. Moving Average Convergence Divergence (MACD) also showed a bearish crossover last week that remains dominant, supporting the bearish view.