NAIROBI (CoinChapter.com) — The cryptocurrency market faces contrasting dynamics as Solana (SOL), Dogecoin (DOGE), and Pepe (PEPE) navigate turbulent waters.
Solana (SOL) Battles Prolonged Selling Pressure
Solana continues to face selling pressure, with its price hovering around $184 after losing support at $195. The next key level lies at $175, aligning with the 200-day Exponential Moving Average (EMA). A drop below this could trigger further declines, potentially pushing the price toward $121.
SOL/USD 1-day price chart. Source: TradingView
The $175 support level has emerged as a key focus for traders. A break below this could intensify bearish momentum, especially as the 200-day EMA hovers around the same zone. Volume spikes during the descending move signal heightened bearish activity.
The Relative Strength Index (RSI) is near 34, indicating oversold conditions. While this suggests a possible relief rally, weak buying interest casts doubt on any sustained recovery. Trading volumes have surged during the decline, highlighting bearish momentum.
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Despite November’s $365 million dApp revenue, Solana has dropped 35% in December. Broader market challenges and macroeconomic factors, including Federal Reserve rate cuts, have weighed on its performance. Traders should watch the $175 level closely for signs of stability or further breakdown.
Dogecoin (DOGE) Struggles to Maintain Momentum
Dogecoin, the original meme coin, has faced a sharp correction, losing over 20% in value over the past week. The asset briefly fell to $0.267 before rebounding to $0.3119, marking its steepest weekly decline in recent months.
Elon Musk’s recent DOGE-themed social media activity, including cryptic references to the “Department of Government Efficiency (DOGE),” failed to impact the token’s price. This reflects reduced reliance on Musk-driven momentum, a significant shift from previous patterns.
DOGE/USD 1-day chart. Source: TradingView
The $0.25 level emerges as critical support, with Fibonacci retracement levels reinforcing its importance. The Relative Strength Index (RSI) shows a reading near 36, suggesting oversold conditions. However, weak buying pressure casts doubt on any immediate recovery. A breach below $0.25 could accelerate bearish momentum, potentially testing lower Fibonacci levels near $0.16.
Despite its year-over-year 233% gain, Dogecoin’s recent struggles highlight growing skepticism among traders.
Pepe (PEPE) Navigates Volatility With Modest Gains
Pepe, the third-largest meme coin by market cap, is trading at $0.00001800, recovering slightly after a volatile week. Despite a 20% weekly loss, the token has managed a 23% intraday spike, reflecting its potential for sharp rebounds.
PEPE/USD 1-day price chart. Source: TradingView
The Fibonacci retracement tool indicates resistance at $0.00002371, with support holding around $0.00001647. Breaking above the 0.618 Fibonacci level could fuel further recovery, while a failure might see the token retest lower supports. The Relative Strength Index (RSI) stands at 41, signaling that the token is nearing oversold conditions.
PEPE/USD 1-day price chart. Source: Coinglass
Pepe’s long/short ratio of 0.94 reflects cautious optimism, with nearly twice as many long positions as shorts. Its recent listing on major exchanges like Coinbase has broadened investor access, potentially driving demand. However, its high volatility and steep price memory may limit further exponential growth in the short term.
The volatile performance of SOL, DOGE, and Pepe underscores the challenges facing the crypto market. While Solana contends with fundamental and technical pressures, Dogecoin’s reliance on speculative influence continues to wane. Meanwhile, Pepe shows potential for short-term gains but remains susceptible to rapid shifts in sentiment.
