Dogecoin, Shiba Inu plunge 8% as Bitcoin selloff deepens below $60,000

Dogecoin and Shiba Inu each fell 8% on Friday as Bitcoin dropped below $60,000 for the first time since October 2024, with the heaviest selling concentrated in the most speculative corners of the crypto market.

"Leverage has been completely flushed out of the meme coin complex," said Jason Wu, on-chain analyst at Edgen. "The $5.3 billion in long liquidations this week is a capitulation event comparable to late January, when bitcoin tumbled from around $90,000 to $60,000."

DOGE fell from $0.0891 to $0.0830, breaking the ascending channel that had held since February and landing on the $0.080 horizontal support, the last structural level visible on the chart. SHIB declined by a similar magnitude, with both tokens tracking the broader market rout. Over $5.3 billion in leveraged long positions have been liquidated across crypto derivatives markets since Monday, with Friday alone accounting for roughly $1.4 billion, according to Coinglass data. Bitcoin dropped as low as $59,840 before recovering above $61,000, down 18% over the past week. Ethereum fell 21%, Solana 21.5% and XRP 16.8% in the same period, per CoinGecko.

The selloff has erased roughly $600 billion from the global crypto market since May 10, dropping aggregate value to $2.1 trillion, according to CoinMarketCap. Bitcoin still dominates the market, accounting for roughly 58% of total value. Large liquidation cascades have historically marked periods of capitulation when leverage is flushed from the system and weaker hands are forced to exit. Dip-buyers began stepping in below $60,000 on Friday, though whether this week's wipeout proves to be a durable reset or simply another step lower remains to be seen.

Bitcoin's decline accelerated after Strategy, the world's largest institutional holder of the cryptocurrency, sold 32 bitcoins to raise about $2.5 million — its first sale since December 2022 and only its second ever. The move broke the company's years-long never-sell rule and rattled investor confidence. U.S. spot Bitcoin ETFs also posted their longest outflow streak on record, with 13 consecutive trading days of withdrawals through June 3, according to Sosovalue data.

For DOGE, a break below the $0.080 support would open the door to a test of $0.070, a level not visited since November 2024. The token's 14-day RSI has slipped into oversold territory, though oversold conditions can persist during sustained selloffs. SHIB faces a similar technical setup, with its next major support around $0.00001200.

This article is for informational purposes only and does not constitute investment advice.