Meme coins are back in the spotlight. After a turbulent period marked by global uncertainty, Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have posted impressive recoveries, catching the attention of both retail and institutional crypto watchers. The catalyst? A ceasefire between Iran and Israel, which has injected a fresh wave of risk-on sentiment into digital asset markets .
Market Recap: Ceasefire Sparks Rally
On Monday, the announcement of a “complete and total” ceasefire between Iran and Israel triggered a sharp rebound across the crypto sector. Meme coins led the charge, with DOGE, SHIB, and PEPE surging by more than 8%, 9%, and 11% respectively. This momentum carried into Tuesday, as traders and investors responded to the improved geopolitical climate .
Derivatives Data: Bullish Sentiment Takes Hold
A closer look at derivatives markets reveals a clear shift in sentiment. According to Coinglass, funding rates for DOGE, SHIB, and PEPE have flipped positive—an indicator that more traders are betting on price increases rather than declines. On Tuesday, funding rates stood at 0,0003% for DOGE, 0,0076% for SHIB, and 0,0044% for PEPE, all pointing to a bullish bias .
The long-to-short ratio, another key metric, reinforces this trend. SHIB and PEPE posted ratios of 1,18 and 1,08, their highest in over a month, while DOGE’s ratio climbed to 1,01. A ratio above one typically signals that bullish positions outnumber bearish ones, suggesting growing confidence in further price appreciation .
Technical Outlook: V-Shaped Recovery in Play
• Dogecoin (DOGE): DOGE rebounded 9% on Monday and is currently trading near $0,163. If it breaks above its descending trendline, the next target is the June 11 high at $0,206. Technical indicators such as the Relative Strength Index (RSI) and MACD are turning positive, hinting at a potential bullish crossover. However, a failure to hold current levels could see DOGE retest support at $0,142 .
Dogecoin funding rate chart. Source: Coinglass
• Shiba Inu (SHIB): SHIB bounced 9,15% after retesting its April 9 low, now approaching a key descending trendline. A breakout could open the door to $0,000013, while a drop below $0,000011 would put $0,000010 back in play. The RSI and MACD both suggest a recovery from oversold conditions .
Shiba Inu funding rate chart. Source: Coinglass
• Pepe (PEPE): PEPE recovered over 11% after dipping below $0,0000088, now trading around $0,0000099. A close above $0,000010 could see a move toward $0,000012, while a reversal would target support at $0,0000079. Technicals mirror those of DOGE and SHIB, with improving RSI and a bullish MACD setup.
Pepe funding rate chart. Source: Coinglass
What’s Next for Meme Coins?
The current rally in meme coins is closely tied to broader market sentiment and macro events. As long as the ceasefire holds and risk appetite remains strong, DOGE, SHIB, and PEPE could continue their upward trajectory. However, traders should keep an eye on key technical levels and funding rates for early signs of a shift in momentum.
