Dogecoin Rebounds, Shiba Inu Tests Support in Memecoin Volatility

Dogecoin experienced a sharp rebound, driven by institutional interest, while Shiba Inu tested its daily downtrend support. Heavy trading volumes indicate strong market reactions to both memecoins.

Dogecoin saw heavy institutional buying, reclaiming a critical trendline. Meanwhile, Shiba Inu witnessed a rapid V-shaped recovery after initially losing support levels. This mirrors insights presented in Galaxy Digital’s new report, which argued that “Memecoins consistently generate some of the highest liquidity and fee volumes in the industry, rivaling mainstream assets.”

The memecoin sector faced heightened volatility as Dogecoin rebounded by 3%, driven by significant capital inflow, while Shiba Inu initially fell by 2% before recovering. The market movements are often influenced by whale activities in the crypto sector, as discussed in a Twitter post analyzing whale activity.

Institutional flows into memecoins are strong, reflecting ongoing interest in high volatility assets. Historical trends show such movements often correlate with broader market pressures.

Historically, sharp divergences between Dogecoin and Shiba Inu occur in volatile markets, similar to the 2023 memecoin surge. These events often trigger sector-wide shifts.

Experts suggest memecoins’ volatility can provide liquidity advantages to exchanges. Analysts continue to watch for shifts in broader speculative activity and potential spillovers into other cryptocurrencies, an analysis supported by the November 2025 Exchange Benchmark report.