As the broader cryptocurrency market begins to regain momentum, popular meme coins Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are showing promising signs of a rebound after recent declines. These tokens, known for their volatile yet community-driven price movements, are hinting at potential trend reversals supported by key technical indicators.
Dogecoin Eyes a Bounce from Critical Support
Dogecoin has started the week with a modest gain of nearly 1%, recovering from a crucial support level at $0.1710, which marked its lowest close in June. This price action suggests the formation of a potential double bottom pattern, a bullish signal that could pave the way for a rally if DOGE manages to break above the neckline resistance at $0.1987. A successful breakout here might propel the price toward the $0.2506 peak seen in early May.
The Relative Strength Index (RSI) for DOGE is gradually climbing from oversold territory, currently around 40, indicating growing bullish momentum and room for further upside before hitting overbought levels. However, if DOGE falls below the $0.1710 support, this bullish setup would be invalidated, possibly leading to a test of the lower $0.1642 support level .
Shiba Inu Mirrors Dogecoin’s Recovery Pattern
Shiba Inu is following a similar recovery trajectory, holding above its critical support at $0.00001220 despite recent selling pressure. The token is also flirting with a double bottom formation, with a neckline resistance at $0.00001337. A decisive close above this level could confirm a breakout and signal a bullish trend continuation.
Like DOGE, SHIB’s RSI is recovering from lows near 40, suggesting a gradual increase in buying interest. Should SHIB fail to maintain its support, it risks a deeper correction toward $0.00001150, last tested in mid-April .
Pepe Coin Gains Momentum, Surpasses Key Resistance
Pepe coin has experienced a sharp recovery, surging nearly 10% from its recent low of $0.00001044 to trade around $0.00001139. This rally has pushed PEPE above a significant resistance level at $0.00001119 on the 4-hour chart, signaling a bullish momentum shift.
The RSI for PEPE has crossed above 50, indicating strengthening bullish sentiment, while the Moving Average Convergence Divergence (MACD) indicator has also shown a bullish crossover, reinforcing the positive outlook. If Pepe maintains support above $0.00001119, it could target the next resistance at $0.00001208. Conversely, a failure to hold this level might lead to a pullback toward the $0.00001000 psychological support .
Market Context and Outlook
This uptick in meme coins coincides with a broader recovery in the crypto market, where investors are regaining confidence after a period of correction. While DOGE and SHIB are showing classic technical patterns that suggest potential rebounds, PEPE’s recent momentum highlights its appeal as a high-volatility asset with short-term growth potential.
Analysts note that while these meme coins can offer exciting opportunities, their price action remains sensitive to overall market sentiment and technical developments. Investors should watch key support and resistance levels closely to gauge the sustainability of these recoveries.
