Meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are under pressure after losing gains since November 7 and falling back to key support levels. The declining demand for meme coins in the derivatives market indicates a risk-off sentiment among traders, leading to fears of further losses.
The crypto market is getting attracted to meme coins
Retail interest in meme coins is waning as traders are becoming risk averse due to intense widespread volatility in the market. Dogecoin and Shiba Inu’s futures open interest (OI) is down 1%-2% over the last 24 hours to $1.63 billion and $80.84 million, respectively. Meanwhile, Pepe suffered a nearly 10% decline in the notional value of all active futures contracts over the same time period, to $176.78 million.
Furthermore, the trading volumes of DOGE, SHIB and PEPE saw an increase of almost 20% or more in the last 24 hours. In line with the decline in meme coin prices, the increase in trading volume signals a wave of selling.
Dogecoin extends losses from last week
At press time on Tuesday, Dogecoin is trading above the $0.15000 level and could break the support level of the November 4 low at $0.15159. As previously reported, the meme coin risks extending the breakout-retest-continuation pattern of the $0.18000 area. FXStreet,
If DOGE clears below $0.15159 with a decisive daily close, it could test the $0.12986 level, aligning with the April 7 low.
Momentum indicators on the daily chart suggest a bearish trend in the DOGE price. The Relative Strength Index (RSI) hovers above the oversold zone at 34, indicating renewed selling pressure, and the Moving Average Convergence Divergence (MACD) extends below the signal line after a crossover on Sunday, indicating continued bearish momentum.
However, if DOGE bounces back from $0.15159 and closes above $0.18000 on a daily basis, it could resume an uptrend.
Shiba Inu at risk of falling below key support level
Shiba Inu fell below $0.00000900 on Monday after seven days of decline. At the time of writing, SHIB is up by more than 1% and remains above the November 4 low of $0.00000837.
If SHIB slips below this key support, it could extend the decline to the October 10 low of $0.00000678, the day the crypto market lost over $19 billion.
Similar to Dogecoin, momentum indicators suggest a bearish bias for Shiba Inu, as the RSI at 36 indicates strong selling pressure, while the MACD displays a negative trend in its moving average lines.
Looking above, if SHIB bounces off $0.00000837, it could test the local resistance trendline formed by connecting the highs of September 13 and November 14 at $0.00000956.
Pepe in freefall risks 40% decline
Pepe posted a 20% decline last week after mounting a breakout-retest-continuation of the $0.00000650 area. At press time, the frog-themed meme coin is trading below the psychological level of $0.00000500, with a gain of about 2%.
The downtrend in PEPE is pointing towards the October 10 low at $0.00000279, which represents a downside risk of more than 40%. However, key support near the round figures $0.00000400 and $0.00000300 could act as momentum barriers to absorb incoming supply, providing upside opportunities.
Similar to other top meme coins, Pepe’s RSI and MACD indicators on the daily chart indicate bearishness.
To resume an uptrend, PEPE must retest the $0.00000650 supply zone.
