Meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) all recorded increases of over 4% at the time of writing on Monday, following Bitcoin's (BTC) strong breakout past the $122,000 mark. The improvement in investors' risk appetite has driven capital flows into high-speculative assets like meme coins, pushing the total market capitalization of this segment above $69 billion.
In light of the positive movements of DOGE, SHIB, and PEPE, market sentiment has become lively with expectations that the upward momentum will continue to spread. Current technical indicators lean towards a bullish trend, indicating that buying pressure is prevailing if the meme coin group maintains its current momentum.
Dogecoin rebounds, reclaiming the $0.20 mark
Dogecoin surged over 4% at the time of writing on Monday, breaking above the 200-day exponential moving average (EMA) at the level of $0.2028, after completing a round bottom reversal pattern – a technical signal for a bullish trend.
If DOGE can maintain a decisive closing above this level, the bullish trend could be reinforced and extended to the resistance area of $0.2145 – a price level that was previously tested last Friday. Beyond this level, the coin could continue to aim for the important psychological level of $0.2500, and further the peak on May 11 at $0.2597.
Current technical indicators also support the bullish trend: the relative strength index (RSI) on the daily frame has reached 67 – close to the overbought area, while the MACD indicator shows that histogram bars are expanding above the 0 line, reflecting a clear increase in upward momentum.
However, if DOGE cannot hold above the 200-day EMA at $0.2028, correction pressure could pull the price back to the next support area around the 100-day EMA, corresponding to the level of $0.1901.
Shiba Inu aims for a new rise amid a strong bullish wave
Shiba Inu (SHIB) surged over 4% on Monday, after recovering from the 100-day exponential moving average (EMA) — a positive technical signal for the start of the new week. This increase was notably driven by a series of Doji candles appearing since Friday, indicating that demand is returning as SHIB tests this important support area.
Currently, SHIB is targeting the nearest resistance level at $0.00001421 – a level that previously acted as strong support at the end of May. If the price can close above this mark, the next target will be $0.00001567 – the nearest peak established on May 23. However, the 200-day EMA at $0.00001452 remains the short-term technical barrier that SHIB needs to overcome.
The RSI indicator is approaching the overbought area with a level of 68 on the daily frame, while the MACD continues to send positive signals with the histogram remaining above the 0 line and gradually increasing, reflecting the strengthening recovery momentum.
In a negative scenario, if SHIB weakens and closes below the 100-day EMA, this coin could reverse to test the 50-day EMA at the level of $0.00001248.
The golden cross signal of PEPE suggests a prolonged price increase
Pepe (PEPE) is making a strong mark by leading the increase of the meme coin group with a 6% rise at the time of writing on Monday, after a quiet trading weekend with Doji candles forming around the $0.00001200 mark. The breakout above the descending triangle pattern on the daily chart has triggered a series of positive technical signals, attracting attention from investors.
If PEPE surpasses the important resistance level at $0.00001362 – a peak that was rejected on June 10 – the upward momentum could continue to expand, targeting the peak on May 23 at $0.00001632.
Investors looking for opportunities may want to pay attention to the 'golden cross' signal, as the 50-day exponential moving average (EMA) has just crossed above the 200-day EMA – a sign that short-term momentum is gradually overpowering the long-term stagnation trend. At the same time, other technical indicators also support the bullish trend: the RSI index reached 68, approaching the overbought area, while the MACD line and signal line have both crossed above the 0 mark – further reinforcing the bullish outlook.
However, a reversal scenario still needs to be considered. If PEPE cannot maintain the support level of $0.00001196 – which was tested on Saturday – selling pressure could push the price back to the 200-day EMA line, around $0.00001094.