Following the rebound on Sunday, meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) signal a positive start to the week. Retail demand is slowly reemerging, recovering from Friday’s market decline that saw more than $19 billion liquidated in a single day, according to derivatives data.
Additionally, on-chain data indicates an increase in demand among large and medium-sized wallet investors as well as a decline in selling pressure, which could foster conditions for an extended recovery.
Retail demand for meme coins increased
Meme coins are hotting up after Sunday’s recovery, which shows that investor sentiment is recovering from Friday’s decline. CoinGlass data shows that futures open interest for Dogecoin, Shiba Inu and Pepe have increased by 14%, 16% and 22% respectively in the last 24 hours. Typically, a double-digit increase in futures OI reflects an increase in traders holding long positions and, in this case, signals a revival in risk-on sentiment.
Meme Coins Derivatives Data. Source: CoinGlass
The sudden change in investor sentiments also highlights increased volatility in the short term.
Dogecoin remains on the rise
Dogecoin was trading above $0.20000 at press time on Monday, up 11% from Sunday. This reversal is in line with steady demand among large-wallet investors, who hold over 1 million DOGE and a total of 134.51 billion DOGE.
Dogecoin supply distribution. Source: Sentiment.
Data from Sentiment shows Network Realized Profit/Loss (NRPL) stands at 19.27 million DOGE booked at profits on Monday, indicating a significant recovery from the 150.51 million DOGE sold at losses on Friday. The correction signals a decline in selling pressure driven by broader market jitters, leading to gains in percentage supply to 71.68% from 66.40% on Saturday.
Dogecoin NRPL data. Source: Sentiment.
On the 4-hour chart, the recovery in DOGE targets the $0.22046 level, marked from Thursday’s low. A decisive close above this level could extend the recovery run to the round figure of $0.25000.
The moving average convergence divergence (MACD) on the same chart extended an uptrend after crossing its signal line on Sunday, indicating a positive change in trend momentum. Also, the Relative Strength Index (RSI) at 44 has recovered from the oversold zone, indicating a decline in selling pressure.
DOGE/USDT 4-hour price chart.
Looking below, if DOGE fails to hold above $0.20000, it could retest the $0.16800 support marked by the June 6 low.
Shiba Inu hopes for further correction above key support level
Shiba Inu remains stable above the psychological level of $0.00001000 at press time on Monday after two consecutive days of recovery. Similar to Dogecoin, selling pressure in Shiba Inu is decreasing as Sentiment’s NRPL data increased from -10.46 million SHIB on Sunday to -1.42 million SHIB. This reduction in SHIBs booked in losses reflects a resurgence in demand for hold and view among investors.
SHIB NRPL data. Source: Sentiment.
The recovery run in SHIB may face resistance from the $0.00001148 level on the 4-hour chart, which previously served as support on July 1. A potential bounce above this level could target the $0.00001361 level, marked by Thursday’s low.
The RSI is at 43, which confirms a decline in selling pressure. Additionally, the MACD and its signal line continue to rise after the crossover on Sunday, suggesting bullish momentum is reemerging.
SHIB/USDT 4-hour price chart.
On the other hand, if SHIB drops below $0.00001000, it could threaten the low of $0.00000966, marked by the first positive 4-hour candle on Friday.
Pepe becomes stronger again as demand is generated by medium-sized investors
Following an 11% recovery on Sunday, Pepe is trading above $0.00000750 at the time of writing on Monday. The frog-themed meme coin has stabilized after Friday’s 27% decline, indicating a potential correction ahead.
PEPE is attracting interest from mid-sized investors, as Santiment’s supply distribution metric indicates a steady accumulation spree among groups holding 100,000 to 10 million PEPE, with their portfolio reaching 610.21 billion PEPE.
PPE supply distribution. Source: Sentiment.
Similarly, large-wallet investors with 10 million to 1 billion PEEPs halted the offloading spree, leaving holdings stable at ₹15.42 trillion.
The RSI at 34 has re-emerged from the oversold zone, confirming the decline in selling pressure. Meanwhile, MACD and its signal line are on a downtrend, indicating bearish pressure on the trend momentum.
PEPE/USDT daily price chart.
If PEPE fails to maintain Sunday’s gains, a clear push below the $0.00000653 low could extend the decline to the psychological level of $0.00000500.
