- This week has seen a significant downturn in the cryptocurrency market.
- Leading assets such as Bitcoin and Ethereum have experienced substantial declines over the past seven days.
- Prominent meme coins, which typically show a positive correlation with Bitcoin, also faced significant devaluation.
The latest steep declines in major cryptocurrencies have cascaded down to the meme coin market, impacting Dogecoin, Shiba Inu, and PEPE Coin.
Dogecoin Slides Below Key Moving Average
Dogecoin (DOGE) has been hit hard, trading at $0.095, marking a 24% decrease over the last week. This decline brings it to a price level not seen since February. On June 7, DOGE fell below its 20-day exponential moving average (EMA), which measures the average price over the past 20 trading days. This dip below the EMA suggests a momentum shift favoring sellers, indicating continued selling pressure and potential further price declines. If this trend persists, we could see DOGE hitting the $0.091 mark soon.
Shiba Inu Battles Declining Buying Pressure
Shiba Inu (SHIB) has also struggled, dropping 23% in the past week to $0.000013 at the time of writing. The general downturn in the market has dampened demand for SHIB, which is reflected in the declining Accumulation/Distribution (A/D) Line. This metric gauges the buying and selling pressure behind a price movement. The A/D Line for SHIB has sharply declined by 86% from a value of 6 trillion to 815.99 billion within just this week. If this downtrend continues, SHIB could fall further to approximately $0.000012.
PEPE Coin’s Plunge Causes Turmoil for Long Traders
PEPE Coin, a meme coin themed around a frog and built on the Solana blockchain, has seen a dramatic 36% drop in value this week. This sharp decline has resulted in the liquidation of numerous long positions in its derivatives market. Liquidations occur when a trader’s position is forcibly closed due to insufficient funds to maintain it. The continued steep downtrend in PEPE suggests potential for more liquidations. The Parabolic Stop and Reverse (SAR) indicator currently places dots above PEPE’s price, signaling a bearish market. Continued decline could see PEPE Coin reaching $0.0000077.
Conclusion
The recent declines across major meme coins like DOGE, SHIB, and PEPE underscore the broader market’s vulnerability and suggest a prolonged bearish trend. Investors should proceed with caution, conducting thorough research before entering positions. Monitor key indicators and be prepared for potential further downturns.
