Memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have suffered significant losses. These declines outpaced those of major crypto assets such as Bitcoin (BTC) and Ethereum (ETH), indicating a possible shift in investor sentiment in this unpredictable segment.
The overall memecoin market cap has fallen to $50.6 billion, down 6.47% from the previous day.
Dogecoin, the pioneer memecoin, has fallen 7.06%. Shiba Inu followed closely behind with a 5.39% drop.
Other memecoins faced even heavier losses. For example, Dogwifhat (WIF) plunged 11.95% and Pepe (PEPE) fell 7.62%, showing a broad retreat in these assets.
Despite the downturn, certain technical indicators suggest potential recovery points for these volatile assets. Dogecoin seems to have found support at $0.1455.
If it rebounds from this level and approaches the $0.1650 resistance, an inverse head and shoulders pattern could emerge. This pattern suggests that Dogecoin’s price could rise by more than 53% from the current market price. However, a break below support would negate this bullish outlook.
Meanwhile, the Shiba Inu is consolidating between $0.00002818 and $0.00002071. A breakout from this range or a further decline could significantly affect its future price trajectory.
As the market undergoes these changes, the sharp decline in memecoin valuations highlights the risks and volatility associated with these digital assets.
Unlike more established cryptocurrencies, memecoins are particularly susceptible to changes in market dynamics and social media influence.
This downturn may reflect a broader reassessment of risk by investors, especially in the face of volatile market conditions. While memecoins can offer impressive returns, the current market situation highlights the need for a cautious investment strategy.
