The meme coin market is experiencing a notable correction, with leading tokens Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) all facing sustained downward pressure. As of Wednesday, the collective market capitalization for meme coins has dropped to $54.41 billion, marking a decline of over 20% in the past month. This trend reflects broader risk aversion in the crypto sector, influenced by rising geopolitical tensions in the Middle East and a general market pullback.
Dogecoin: Testing Key Support Levels
Dogecoin, the original meme coin and still the largest by market cap 3, has now posted losses for eight consecutive days. The price recently touched a six-week low at $0.1639, down nearly 15% over this period. Technical indicators such as the MACD and RSI are signaling increased bearish momentum, with the RSI at 35 approaching oversold territory. If DOGE fails to maintain support above $0.1642, the next significant level to watch is $0.1428, last seen in early April. However, a rebound above $0.1642 could see DOGE retest its monthly high near $0.2067 1.
Shiba Inu: Bearish Momentum Intensifies
Shiba Inu, which has built a strong DeFi ecosystem on Ethereum , is mirroring Dogecoin’s decline. SHIB has also recorded eight straight days of losses, recently hitting a two-month low at $0.00001134. The token is holding just above the $0.00001150 support, but a close below this level could open the door to further declines toward the year-to-date low of $0.00001029. The daily RSI for SHIB is at 36, indicating that bearish sentiment remains strong. A potential bounce could see SHIB test resistance at $0.00001200.
Pepe: Clinging to Psychological Support
Pepe, the newest of the three and a fast-rising meme coin, is struggling to stay above the crucial $0.00001000 psychological support. PEPE is down nearly 10% this week, and a daily close below this level could trigger a move toward $0.00000900, a support last tested in late April. The RSI for PEPE is at 38, and the MACD continues to show a bearish trend. If market conditions stabilize, especially with easing geopolitical tensions, PEPE could attempt a recovery toward $0.00001196.
Market Context and Outlook
The current downturn in meme coins is part of a broader crypto market correction, with risk-off sentiment prevailing due to global uncertainties. While meme coins are known for their volatility and speculative appeal, their recent performance highlights the importance of monitoring technical levels and market sentiment closely. For investors, these conditions underscore the need for caution and a clear understanding of the risks associated with meme coin investments.
For more on meme coins and their market dynamics, see CoinMarketCap’s meme token rankings.
