Meme Coins Face Heavy Losses Amid Crypto Market Sell-Off
Meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are falling sharply. They are testing important support levels as the broader cryptocurrency market falls. If the market weakens further, these coins may drop more.
Investors Pull Back from Speculative Meme Coins
Meme coins often fall first during market corrections. This is because they are very volatile and driven by speculation. Data from CoinGlass shows futures Open Interest (OI) has dropped in the last 24 hours:
- DOGE OI down 3% to $1.75 billion
- SHIB OI down 12% to $78.52 million
- PEPE OI down 9% to $242.12 million
The falling OI means traders are reducing risk and stepping back from positions.
Dogecoin Tests Monthly Support, Bears Control Short Term
Dogecoin trades just above $0.18 on Friday after four days of losses. A Death Cross pattern formed as the 50-day EMA fell below the 200-day EMA, signaling a bearish trend. DOGE tested its $0.17816 support, set on October 11, for the third time this month.
If Dogecoin closes below this level, it may fall toward the June 22 low of $0.14270. Momentum is weak, with MACD nearing a bearish crossover and RSI at 39 showing bearish pressure.
If DOGE bounces at $0.17816, it could rise to challenge $0.20869, the August 19 low.
Shiba Inu Eyes Key Psychological Level After Small Rebound
Shiba Inu rose by 1% on Friday toward the $0.00001000 psychological level. It bounced from the October 17 low near $0.00000924 but struggles to cross the S1 Pivot Point at $0.00000987.
MACD is close to a bullish crossover, hinting at a possible uptrend. RSI at 42 shows a recovery from oversold conditions.
If SHIB gains momentum, resistance may come at the 50-period and 200-period EMAs at $0.00001015 and $0.00001085.
Pepe Holds Key Support but Faces Risk of Further Decline
Pepe gained 2% on Friday after four days of decline. It holds the strong support at the S2 Pivot Point of $0.00000645, intact since October 11.
A close below this level may lead to bigger losses toward the March 11 low of $0.00000653 and the S3 Pivot Point at $0.00000404.
Technical signals show strong selling pressure. The RSI at 36 stays just above oversold, and MACD risks a bearish crossover.
If Pepe bounces at $0.00000645, it could reach the S1 Pivot Point at $0.00000788.
