Dogecoin, Shiba Inu, Pepe Correction Expands… Will Meme Coins Start Another Plunge?

▲ Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE)/ChatGPT-generated image ©

Major meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are consecutively losing key support levels, increasing correction pressure. With the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) all sending bearish signals, market attention is turning to the possibility of further declines.

According to investment media FXStreet on May 25 (local time), the meme coin market has seen increased selling pressure recently, with Dogecoin, Shiba Inu, and Pepe all continuing their bearish trends. Over the past week, Dogecoin fell by more than 6%, while Shiba Inu and Pepe also dropped by over 2% and 2.5% respectively. In particular, Dogecoin and Shiba Inu have fallen below key support areas, and Pepe has also entered a phase of testing major support levels.

Dogecoin is currently trading around $0.102, remaining below its 50-day Exponential Moving Average (EMA). It had previously failed to break above the 100-day EMA at $0.105 before turning downwards. The media analyzed that if the correction continues, there is a possibility of a further decline to the psychological support level of $0.100. The RSI is at 44, below the neutral line of 50, and the MACD has also maintained a bearish crossover trend since the 16th.

Shiba Inu's bearish trend intensified last week, closing below $0.0000056, which was the bottom of its sideways trading range. It is currently retesting the price level it previously broke away from. If it fails to break through the $0.0000056 resistance, the next support level is suggested to be $0.0000050, the low of February 6. Both RSI and MACD are also signaling strengthening downward momentum.

Pepe has been pushed down to around its daily support level of $0.0000036. FXStreet analyzed that if the closing price forms below this range, there is a possibility of further correction down to $0.0000033, the low of April 7. Both Pepe's RSI and MACD also show negative trends, reinforcing the bearish outlook. Conversely, if it succeeds in a rebound, the 50-day EMA at $0.0000038 has been mentioned as a short-term resistance level.

The market assesses that the highly volatile meme coin market is experiencing relatively greater pressure amid recent increased Bitcoin volatility and weakening risk asset preference. However, the possibility of a short-term rebound remains depending on whether key support levels are defended, so investor caution is expected to continue for some time.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*