The meme coin market is experiencing a significant revival, with market capitalization jumping over 6% on Tuesday to surpass $62 billion . Leading tokens Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are all showing promising technical indicators that suggest this rally may have staying power.
Dogecoin Breaking Barriers
Dogecoin has jumped more than 5% on Monday, successfully breaking out of a bearish pattern that had been containing its price movement . This technical breakthrough is particularly significant as DOGE has crossed above a key resistance trendline formed by previous price peaks from late May through early June.
The cryptocurrency is now eyeing the critical $0.20 level, which would represent an important psychological and technical breakthrough. The Moving Average Convergence/Divergence (MACD) indicator has crossed above the zero line, a signal that typically indicates a positive trend reversal is underway .
While DOGE experienced a slight pullback of under 1% on Tuesday, this appears to be a normal consolidation phase after Monday’s strong performance. Traders are watching the $0.1975 level closely, as a sustained break above this point could trigger a move toward $0.2145 .
Shiba Inu’s Technical Breakout
Similar to Dogecoin, Shiba Inu surged approximately 5% on Monday before experiencing a minor correction on Tuesday . SHIB has successfully broken out of a local resistance trendline on its 4-hour chart, suggesting a potential trend reversal.
The token is currently facing resistance at $0.00001329, which represents its recent weekly high. A decisive move above this level could propel SHIB toward $0.00001393, a price point that previously served as a crucial support level last month .
Technical indicators are aligning favorably for SHIB, with the MACD indicator surging above the zero line alongside its signal lines, projecting a high likelihood of continued upward momentum.
SHIB/USDT 4-hour price chart. Source: Tradingview
Pepe Leading the Pack
Among the major meme coins, Pepe has shown the most impressive performance with an 8% surge on Monday, marking its fourth consecutive positive day . The frog-themed token has successfully maintained its position above the psychologically important $0.000010 support level.
PEPE is currently trading at approximately $0.00001253, which places it below the 50% Fibonacci retracement level at $0.00001681. This level, calculated from the token’s all-time high to its year-to-date low, represents a significant target for traders .
The technical outlook suggests PEPE could have upside potential of over 30% as investors who purchased below the 50% Fibonacci level may drive buying pressure to reach this halfway mark as a profit-taking point .
Market Implications
This resurgence in meme coin prices comes amid broader market volatility but suggests that risk appetite is returning to the cryptocurrency sector. Technical indicators across all three major meme coins point to potential continued upside, though each faces its own set of resistance levels that must be overcome to confirm a longer-term bullish trend .
For investors and traders, these developments present both opportunities and risks. While the technical setups appear favorable, meme coins are historically volatile and can experience rapid price swings in either direction .
The current rally aligns with observations from market analysts who have noted that while legacy tokens like DOGE and SHIB remain significant players, the meme coin ecosystem continues to evolve with newer entrants also showing strong performance .
