In the crypto world, the last few days have been marked by negative sentiment, with popular memecoins such as Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE) hitting 7-day lows, reported by Coin Edition.
This development was largely influenced by Bitcoin's inability to break the US$28,300 level, which contributed to worsening overall market conditions.
The ongoing slowdown in the crypto space can be attributed to investors taking their profits and concerns regarding the Fed's monetary policy.
Investors are proceeding cautiously while waiting for further clarification regarding the US central bank's stance regarding inflation and interest rates.
Prospects for Popular Memecoins DOGE, SHIB and PEPE
DOGE Analysis
Dogecoin (DOGE) has retreated from an intraday high of US$0.06135 to a low of US$0.06057 in the last 24 hours. At the time of writing, DOGE was down 1.47 percent from its 24-hour high, trading at US$0.06037.
If the negative momentum manages to break through the US$0.06057 support, the next level to watch is around US$0.059. Conversely, if positive momentum is dominant, the price may re-test the US$0.06100 level.
Despite the latest price correction, DOGE's market capitalization only fell 1.48 percent to US$8,540,913,811, while its 24-hour trading volume increased by 13.45 percent to US$105,208,987.
This shows that trading activity and interest in DOGE remains strong, indicating the potential for future price volatility.
Analysis SHIB
Shiba Inu (SHIB) started the day with a bullish trend, but pulled back after encountering resistance at a 24-hour high of US$0.000007236.
As a result, SHIB price fell to a 7-day low of US$0.000007164 before finding support and sitting at US$0.000007141.
If there is a bearish break below the US$0.000007164 support, this could test the next support at US$0.000007100 for SHIB.
However, if the bulls manage to take control and push the price above the resistance of US$0.000007236, it could signal a bullish continuation with the next target at US$0.000007300.
SHIB's market capitalization has fallen by 1.23 percent to US$4.21 billion, while its 24-hour trading volume rose by 11.16 percent to US$57.15 million, indicating increased market activity.
Traders take advantage of price volatility to make short-term transactions, taking advantage of SHIB price movements.
AMB Crypto reports that the upcoming release of Consumer Price Index (CPI) data has significance for SHIB and the crypto market in general.
The Fed relies heavily on CPI data to adjust its interest rate targets, which directly affects assets like crypto.
Depending on the trend of the data towards bull or bear, SHIB could experience significant price movements.
An extended defense and break of the support zone and the 12-hour bullish order block of US$0.00000713-US$0.00000727 could weaken SHIB further, with the next support level to watch being at US$0.00000698.
PEPE Analysis
Pepe (PEPE) started the day with negative sentiment, reaching a low of US$0.0000006967, where support formed. Then, bulls regained control of the market, pushing the price to a 24-hour high of US$0.0000007191.
Up 1.06 percent from its previous low, PEPE is trading at around US$0.0000006982 at the time of writing.
Although PEPE's market capitalization fell 1.06 percent to US$273.54 million during the correction, its 24-hour trading volume rose by 27.70 percent to US$36.49 million.
Despite previous negative sentiment, the retracement of PEPE's market value and increase in its trading volume indicate continued interest and activity in this memecoin.
If bears manage to break support at US$0.0000006967, this could trigger further selling pressure, with the next supports at US$0.00000065 and US$0.00000060 of concern.
On the other hand, if the bulls manage to resist the selling impulse at the current support, a possible recovery could go towards US$0.00000075 and US$0.00000080.