On Friday, meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) experienced a decline as the broader cryptocurrency market faced selling pressure. The top three meme coins by market value—Dogecoin, Shiba Inu, and Pepe—dropped by 5% to 8% in the past 24 hours. This downturn comes amid a lack of key economic data due to the government shutdown, which has made a December interest rate cut by the Federal Reserve less likely. Additionally, because the October home survey was incomplete, only partial employment data will be released.
Meme coins, like other high-risk assets in the crypto market, face challenges as investors remain cautious, especially if interest rates stay elevated. Investors who are borrowing at rates between 3.75% and 4.0% may be hesitant to take on the risks of these volatile assets.
Dogecoin, however, is still attracting retail interest, especially with the possibility of Bitwise launching an Exchange-Traded Fund (ETF) by November—assuming there is no intervention from the SEC. The open interest in Dogecoin futures has increased by about 2%, reaching $1.47 billion. If DOGE drops below $0.12986, it could face further downward pressure, potentially targeting $0.10000 or the October 10 low of $0.09500.
Shiba Inu, on the other hand, is at risk of breaking below the support level it formed last week. With its fourth consecutive bearish candle, SHIB continues to decline, falling below the $0.00001000 mark. It is approaching the S1 Pivot Point at $0.00000879, which previously provided a rebound. If SHIB closes below this level, it could slide further toward the S2 Pivot Point at $0.00000759. Momentum indicators are showing mixed signals, with the RSI at 39 hinting at a potential bullish divergence, while the MACD is nearing a bearish crossover.
Pepe is also struggling, with the coin falling about 1% on Friday, adding to its 5% drop from the day before. The frog-themed meme coin appears to be following a pattern similar to Dogecoin, with a breakout-retest-continuation setup around $0.00000650. The S1 Pivot Point at $0.00000528 is currently absorbing the supply, but if the price drops below this level, bears could push it toward the S2 Pivot Point at $0.00000449.
As the crypto market faces ongoing turbulence, meme coins like DOGE, SHIB, and PEPE are losing momentum and struggling to maintain their appeal among investors.
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