Dogecoin and Shiba Inu Plunge as Meme Coin Mania Unravels and Outflows Hit Record Levels

If you thought meme coins were immune to gravity, today’s price action in Dogecoin and Shiba Inu should be a sobering reality check. The so-called ‘diamond hands’ are looking more like butter fingers as both coins cratered by 11% in a single session, with panic selling and historic eight-figure outflows slamming the door on the party that never ends, until it does.

The carnage started with Bitcoin’s collapse, which triggered a chain reaction across the altcoin complex. Dogecoin and Shiba Inu, the poster children of speculative excess, bore the brunt of the liquidation wave. According to Benzinga, both coins crashed 10-11%, with outflows reaching levels not seen since the meme coin mania of 2021. The dominoes fell fast. BitMine, a major mining player, faces an $8 billion loss as Ethereum drops below $2,000. XRP got obliterated by 22% in a day. Even the legendary Peter Brandt is sounding the alarm, flagging $63,800 as Bitcoin’s next target and warning of structural weakness in crypto.

This is not just a blip. It’s a regime change. Meme coins have always been a high-beta bet on crypto euphoria, but the music has stopped and the exits are jammed. The market is punishing excess, and the speculative froth is evaporating. The outflows are not just retail panic. Institutional players are dumping as well, with Stifel predicting a Bitcoin slump down to $38,000 and Michael Burry, of ‘Big Short’ fame, issuing fresh warnings as Bitcoin crashes toward $65,000.

The context is brutal. Meme coins thrive on momentum, liquidity, and the greater fool theory. When those pillars collapse, there’s nothing left but a long way down. The last time outflows of this magnitude hit the market, it took months for prices to find a floor. The difference now is that the macro backdrop is even less forgiving. The Fed is hawkish, jobs are being cut, and risk appetite is evaporating. Meme coins are the first to go when the tide turns, and this looks like a full-blown capitulation.

The absurdity of the meme coin market has always been part of its charm. But when the joke stops being funny, the losses get real. Dogecoin and Shiba Inu are down double digits, and the bid is vanishing. The days of easy money are over. The market is demanding real utility, and meme coins are coming up empty.

Strykr Watch

Technically, Dogecoin and Shiba Inu are in free fall. Key support levels have been obliterated, and there’s no meaningful floor until much lower. For Dogecoin, the next major support is around the $0.055 level, with resistance now at $0.065. Shiba Inu is flirting with its 2023 lows, and the charts are a wasteland of broken trendlines and failed bounces. RSI is deeply oversold, but that’s cold comfort in a market that’s punishing excess.

Volume has spiked as panic sellers rush for the exits. Implied volatility is surging, and options markets are pricing in further downside. The risk of a cascading liquidation event is high, especially if Bitcoin fails to hold above $65,000. The technicals are screaming caution, and the only thing more dangerous than catching a falling knife is assuming this is the bottom.

The bear case is dominant. If Bitcoin continues to slide, meme coins will lead the way down. The only hope for a bounce is a short-covering rally, but that’s a trade for masochists, not investors.

Opportunities are scarce, but not nonexistent. For the truly brave, a small speculative long at oversold levels with a tight stop can work, but size accordingly. The real opportunity is on the short side, either through direct shorts or put options. Wait for a dead cat bounce to reload shorts, and don’t get greedy. The path of least resistance is lower.

Strykr Take

The meme coin era is over, at least for now. Dogecoin and Shiba Inu are leading the exodus out of speculative assets, and the pain is not over. This is a market that rewards discipline, not hope. Stay defensive, use stops, and don’t try to be a hero. Strykr Pulse 28/100. Threat Level 4/5.