Dogecoin and Shiba Inu Plummet 9% Amid Bitcoin's $60,000 Struggle
By John Nada·Jun 5, 2026·2 min read
Dogecoin and Shiba Inu dropped 9% as bitcoin neared $60k, reflecting broader risk-off sentiment and heavy liquidations.
Dogecoin and Shiba Inu are taking a hit as bitcoin flirts with the $60,000 mark.
On June 5, 2026, traders watched in dismay as the market's appetite for risk soured, triggering a sell-off in memecoins. According to CoinDesk, both Dogecoin and Shiba Inu sank approximately 9%, leading losses among major tokens. Heavy volume and liquidations overwhelmed support levels, showcasing a broader risk-off move across crypto markets.
This downturn comes as bitcoin struggles to maintain the psychologically significant $60,000 level. CoinDesk noted that this shift in sentiment led to liquidation across altcoins and memecoins. In response, derivatives traders shifted to defensive postures, with DOGE futures open interest declining and SHIB open interest hovering near cycle lows.
Despite the sell-off, underlying signals for these memecoins remain mixed. CoinDesk reported that Dogecoin and Shiba Inu saw significant exchange outflows, a pattern typically associated with accumulation. However, this failed to bolster their prices, which suggests traders are prioritizing macro conditions over long-term accumulation signals.
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Dogecoin fell from $0.0891 to $0.0830, breaking an ascending channel that had guided its price since February. CoinDesk's analysis indicates this breakdown has shifted focus toward lower support levels near $0.067. Meanwhile, Shiba Inu dropped from $0.000004997 to $0.000004630, cutting through support near $0.000004780 under heavy selling pressure.
The outlook remains bearish. For Dogecoin, the crucial level is $0.0819. A breach here could set the stage for a move toward $0.067. Shiba Inu faces a similar test at $0.000004575; losing this area risks a fall to around $0.000004500.
But, despite these ominous signals, there's a glimmer of contrarian hope. Oversold readings are emerging across momentum indicators. Until buyers reclaim broken supports, however, sellers remain in control.
The broader context is intriguing. Bitcoin maximalists, including figures like Mati Greenspan and Michael Saylor, attribute the recent crypto slump to speculative capital shifting into AI ventures, as noted by CoinDesk. This diversion of funds is evidenced by record outflows from U.S. spot bitcoin ETFs and surging AI equities.
As we watch these developments unfold, the focus remains on whether these battered memecoins can reclaim their past strength or if the crypto market will continue its downward spiral.