Continued
It recorded losses for the eighth consecutive day on Wednesday, indicating an increase in downward momentum.
Witnessed
A sharp decline on Tuesday, marking its lowest level in two months, increasing the risks of a drop.
Clinging to
At a critical psychological support level while an increase in selling pressure may trigger the next decline.
Leading meme coins continued their recent losses on Wednesday, with the sector's market capitalization reaching $54.41 billion, down more than 20% in the past month. Dogecoin and Shiba Inu have declined by 3% so far this week, while Baby has fallen by more than 8% as selling pressure increases across the market due to rising geopolitical tensions in the Middle East.
Dogecoin faces the risk of dropping below $0.15.
Dogecoin fell by more than 1% on Wednesday, extending its losses for the eighth consecutive day, amounting to nearly 15%. After declining by about 2% on Tuesday, the meme coin reached its lowest level at $0.1639, its lowest price in six weeks.
The lower resistance path warns of sharp price movement, threatening to breach the support level at $0.1642, which represents the lowest level recorded on May 6. If Dogecoin bulls fail to maintain a daily close above $0.1642, Dogecoin’s decline may extend towards the level of $0.1428, which was last tested on April 8.
Momentum indicators issue a sell signal as the bearish trend takes control of the daily chart. The moving average convergence/divergence (MACD) shows a downward trend deeply penetrating the negative territory, reflecting the decline of its signal line, indicating increasing selling pressure.
The relative strength index (RSI) is sliding at 35 towards the oversold area, indicating a gradual increase in downward momentum.
Daily chart of the price
If Dogecoin holds above $0.1642, the trend reversal may rise towards the monthly high of $0.2067.
Shiba Inu is about to continue its downward trend.
Shiba Inu closely mirrors Dogecoin, recording its eighth consecutive bearish candle, as it stabilized above the support level of $0.000010, its lowest close in March. The poorly performing meme coin reached its lowest level in two months at $0.00001134 on Tuesday.
Despite avoiding a daily candle close below the support level of $0.00001150, Shiba Inu's chances of reversal are diminishing. Closing below this level could prolong Shiba Inu's decline towards $0.00001029, its lowest level since the beginning of the year.
Momentum indicators indicate a decline in Shiba Inu's share, with the daily relative strength index at 36, approaching the oversold area. The bearish MACD, which is now trading in the negative zone with its signal line, reflects the downward trend we have seen in Dogecoin.
Daily chart of Shiba Inu (SHIB/USDT).
Conversely, any potential rebound for Shiba Inu may test the level of $0.00001200, the level recorded at the close on June 5.
Baby risks losing its psychological support.
Baby struggles to hold above its psychological support level at $0.00001000. However, the meme coin has declined by nearly 10% so far this week, showing a downward trend as the path of least resistance.
The declining meme coin may close the daily trading candle below the psychological support level of $0.00001000. In such a scenario, Baby may test the support area near $0.00000900, indicated by a green bar on the daily chart, which was last tested on April 26.
With the decline of the BBP/USDT pair, the momentum indicator indicates a bearish bias. The relative strength index is approaching 38 in the oversold territory while the MACD indicator is declining with a new wave of bearish histograms.
Daily chart of the price PEPE/USDT.
If tensions in the Middle East ease, the stability of the broader cryptocurrency market may help Pepe rise above the level of $0.00001000. In this case, Pepe may retest the level of $0.00001196, which was the lowest recorded on May 17.
