Meme Coins Under Pressure: Dogecoin, Shiba Inu, and Pepe Face Potential Downturn
The meme coin market is feeling the heat as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) struggle to maintain their footing amidst a broader cryptocurrency market lull. All three coins are exhibiting signs of weakness, with potential for further declines if key support levels fail to hold.
- Dogecoin: Currently hovering around $0.19 after a near 14% drop last week.
- Shiba Inu: Closed below its 50-day EMA, suggesting a possible double-digit percentage drop.
- Pepe: Holding just above critical support at $0.0000115; a break below this level could trigger significant selling pressure.
Dogecoin’s Downward Trend: Will $0.18 Hold?
Dogecoin’s price dipped below its 200-day Exponential Moving Average (EMA) at $0.21 on Thursday, followed by a nearly 10% drop the next day. As of Monday, DOGE is trading lower, approaching its weekly support level at $0.18.
A daily close below $0.18 could signal a further decline, potentially pushing DOGE towards the next support level at $0.15.
Technical indicators support this bearish outlook. The Relative Strength Index (RSI) on the daily chart is at 39, below the neutral level of 50, indicating downward momentum. The Moving Average Convergence Divergence (MACD) also shows a bearish crossover, suggesting a potential sell signal.
However, a recovery could see DOGE retesting its 200-day EMA at $0.21.
Shiba Inu: Bears Aim for a 10% Drop
Shiba Inu also faced selling pressure, closing below its 50-day EMA at $0.0000139 on Thursday and falling 8.13% the following day. Currently, SHIB is trading around $0.0000127.
If the 50-day EMA continues to act as resistance, SHIB could experience a further 10% decline from current levels, potentially retesting its April 16 low of $0.0000114.
Similar to Dogecoin, Shiba Inu’s technical indicators point towards bearish momentum. The RSI is at 38, below the neutral level, and the MACD shows a bearish crossover with increasing red histogram bars below the neutral level.
A potential recovery could see SHIB retesting its 50-day EMA at $0.0000139.
Pepe: Bearish Momentum Gaining Traction
Pepe experienced a decline of over 13% last week as a bearish divergence played out. However, it found support around its 50-day EMA at $0.0000113 over the weekend. At the time of writing, it’s trading around $0.0000115.
A close below the 50-day EMA could lead to a further decline, potentially retesting the next daily support at $0.0000103.
The RSI on the daily chart is at 44, below the neutral level, indicating bearish momentum. The MACD also shows a bearish crossover with increasing red histogram bars below the zero line.
On the other hand, if Pepe finds support around its 50-day EMA at $0.0000113, it could recover and retest its daily resistance level at $0.0000121.
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