Meme Coins Dogecoin, Shiba Inu, and Pepe Extend Gains Amidst Market Optimism
Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), popular meme cryptocurrencies, are building on their recent gains, continuing a positive trend that began with a strong recovery the previous day. This resurgence follows news of a ceasefire between Iran and Israel, injecting renewed confidence into the crypto market.
Risk Sentiment Fuels Meme Coin Recovery
The market responded positively to reports of a “complete and total” ceasefire between Israel and Iran. This announcement triggered a significant rebound in cryptocurrency markets, with meme coins like DOGE, SHIB, and PEPE experiencing substantial gains, exceeding 8%, 9%, and 11% respectively. This upward momentum has continued into the current trading session.
Derivatives Data Suggests Bullish Bias for DOGE, SHIB, and PEPE
Data from CoinGlass reveals a shift in sentiment towards these meme coins. The funding rates for DOGE, SHIB, and PEPE have turned positive, indicating that more traders are betting on price increases than decreases. A positive funding rate generally signifies a bullish outlook, while negative rates suggest bearish sentiment.
Specifically, the funding rates for these coins are currently at 0.0003% for DOGE, 0.0076% for SHIB, and 0.0044% for PEPE, reinforcing the bullish outlook.
The long-short ratios for SHIB and PEPE are also elevated, standing at 1.18 and 1.08 respectively, marking their highest levels in over a month. This indicates that more traders are holding long positions (betting on price increases) than short positions. While DOGE’s long-short ratio is at 1.01, it has been steadily increasing but remains below its recent peak.
A long-short ratio above one typically reflects bullish market sentiment.
Technical Analysis Points to Potential Further Gains
Technical analysis suggests that Dogecoin’s price experienced a sharp recovery, rising 9% recently. Currently, it’s trading around $0.163.
If DOGE breaks above a descending trendline, it could rally towards its June 11 high of $0.206.
The Relative Strength Index (RSI) is recovering from oversold levels, indicating fading bearish momentum. The Moving Average Convergence Divergence (MACD) is also hinting at a bullish crossover, which could signal a buying opportunity.
However, failure to break higher could lead to a retest of the recent low of $0.142.
Shiba Inu’s chart shows a recent retest of the April 9 low at $0.000010, followed by a 9.15% rebound. It is now approaching a descending trendline.
A break above this trendline could lead to a test of the June 11 high of $0.000013.
Like DOGE, SHIB’s RSI is recovering, and the MACD is showing a bullish crossover.
A break below the $0.000011 support level could lead to a decline towards the April 9 low.
Pepe’s price briefly fell below its daily support level at $0.0000088 but has since recovered. It is currently trading around $0.0000099.
If PEPE breaks above the $0.000010 resistance, it could rally towards the next resistance level at $0.000012.
PEPE’s RSI is also recovering, and the MACD is hinting at a bullish crossover.
A break below the $0.0000088 support could lead to a decline towards the $0.0000079 support level.
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