Meme Coins Decline Amid Market Sell-Off
Meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) dropped on Friday. The broader cryptocurrency market is facing renewed selling pressure. Traders worry the Federal Reserve may not cut interest rates in December. The chance of a rate cut dropped to about 50% before the Federal Open Market Committee (FOMC) meeting.
The derivatives market and technical charts show bearish signs. This raises the risk of further losses for meme coins.
Dogecoin, Shiba Inu, and Pepe Face Losses
Dogecoin, Shiba Inu, and Pepe fell between 5% and 8% in the last 24 hours. The decline follows a lower chance of a Fed rate cut due to weak economic data caused by the government shutdown. Kevin Hassett, National Economic Council Director, said the October employment survey was not done. This means only part of the jobs report will be available.
The CME FedWatch Tool shows a 52% chance of a 25 basis point rate cut in December, down from nearly 63% on Thursday. Higher rates may reduce risk-taking in meme coins and the crypto market.
- SHIB futures open interest dropped 7% to $67.71 million.
- PEPE futures open interest fell 3% to $190.84 million.
- DOGE futures open interest increased 2% to $1.47 billion as retail demand continues.
Dogecoin’s rise is partly linked to a possible Bitwise Exchange Traded Fund (ETF) launch by the end of November if the SEC allows it.
Technical Outlook for Dogecoin, Shiba Inu, and Pepe
Dogecoin trades below $0.17 after a 4% drop on Thursday. It risks falling to $0.12986, the April low. If DOGE falls below this, prices could reach $0.10 or even $0.095.
The MACD indicator on Dogecoin’s daily chart may soon signal more selling. The RSI shows some strength above last week’s low, suggesting possible support. Dogecoin trades below its 50-, 100-, and 200-day moving averages, indicating a bearish trend.
If DOGE holds above $0.15, buying interest and the possible ETF launch could push it back to $0.18.
Shiba Inu continues falling below the key $0.00001 level, hitting its fourth straight losing day. SHIB approaches a support level at $0.00000879. If it breaks this support, it could drop to $0.00000759.
Shiba Inu’s RSI shows some bullish signs, but MACD may turn bearish soon. A bounce from $0.00000759 could lead SHIB to test the $0.00001 resistance again.
Pepe dropped nearly 1% on Friday, extending a 5% fall from Thursday. It tests support at $0.00000528. A close below this might push Pepe down to $0.00000449.
The RSI for Pepe nears oversold levels, with a slight bullish divergence. However, MACD risks confirming more selling pressure. On the upside, Pepe could face resistance near $0.00000650.
