Dogecoin, Shiba Inu, and Pepe Struggle as Crypto Market Weakens
Blue chip meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) failed to continue their recovery from Monday. The overall cryptocurrency market is facing pressure. Key signs such as falling futures Open Interest, reduced holdings by large investors, and weakening momentum suggest these coins may face a longer correction.
Whales Reduce Holdings in Major Meme Coins
Large investors, known as whales, often influence crypto trends. Data from Santiment shows these whales are selling some of their meme coin holdings.
- DOGE holders with over 1 billion tokens dropped their share from 46.75% to 46.28% since October 1.
- Shiba Inu investors holding 1 million to 1 billion SHIB reduced their share from 2.83% to 2.822%, while those with over 1 billion SHIB remain steady at 97.16%.
- Pepe holders with 1 million to 1 billion PEPE cut their share from 3.84% to 3.764%. Investors with over 1 billion PEPE increased their share slightly to 96.23% from 96.15%.
This shows a cautious mood among meme coin whales as market volatility rises.
Futures Open Interest Drops, Indicating Lower Retail Interest
Higher market volatility often leads to selling in meme coins. These coins depend heavily on community interest and are prone to speculation. A drop in retail interest may cause further price declines.
- DOGE futures Open Interest fell by 2% to $1.85 billion.
- SHIB futures Open Interest dropped 5% to $76.02 million.
- PEPE futures Open Interest decreased 6% to $209.67 million.
Lower Open Interest means traders are reducing risk by closing or lowering their positions.
Technical Analysis Shows Risk of Further Losses
Dogecoin: DOGE failed to stay above the $0.20 support level. It made a lower high on the 4-hour chart, forming a declining trendline. DOGE is down nearly 1% on Wednesday, extending losses from Tuesday. The price is nearing support at $0.1781. Technical indicators like MACD and RSI show weakening bullish momentum and rising selling pressure.
A bounce would need DOGE to break above Tuesday’s high of $0.2056. This could push the price toward the $0.2172 resistance level.
Shiba Inu: SHIB trades below the $0.00001000 mark and risks falling further within a downward channel. Immediate support is at $0.00000911. The MACD and RSI indicate declining buying pressure. For an uptrend, SHIB must close above the 100-period EMA at $0.00001073. Resistance levels are $0.00001116 and $0.00001225.
Pepe: PEPE dropped 3% on Tuesday after a short recovery. It now trades below $0.00000700, eyeing support at $0.00000619. Like other meme coins, PEPE’s MACD shows a bearish crossover and RSI is at 43, signaling weaker buying interest. A move above Tuesday’s high of $0.00000738 could push PEPE toward resistance at $0.00000788.
