Popular meme-based currencies like PEPE, Dogecoin (DOGE), and Shiba Inu (SHIB) have witnessed price declines in the last 24 hours. According to CoinMarketCap, PEPE is down 0.75% and trading at $0.000003, DOGE is down 7.42% at $0.119322, and SHIB is down 7.24% to $0.000013 as of this announcement.
This wide-ranging exchange across the major meme coins is driven by two fundamental factors.
Taking profits
These meme coins have recently undergone significant price increases, that cause experienced crypto traders to take winnings off the table following these parabolic gains. In addition, market analyst Rekt Capital makes an important comment about DOGE’s market behavior, stating that a monthly close above the current macro downward line might be a watershed moment for DOGE. This illustrates a short-term bearish trend for DOGE, which Rekt believes is primed for a macro upswing after closing above the bearish trend line.
Lack of Long-term Belief
Additionally, while meme coins frequently experience speculative manias and viral campaigns, most traders do not perceive them as long-term investments when compared to cryptocurrencies like Bitcoin. With Bitcoin’s next halving event scheduled for April 2024, traders are shifting their focus back to more established coins such as BTC, which they feel will have long-term worth.
Technical indicators show that meme currencies are cooling off. For example, PEPE’s daily RSI is 77.91, suggesting overbought circumstances. Similarly, DOGE and SHIB have daily RSI readings of 85.53 and 85.75, indicating that they are technically overextended. As a result, many traders are starting to predict a correction.
To summarize, the strong dips in PEPE, DOGE, and SHIB over the previous day have been driven by a combination of taking profits after recent surges and a rotation back into cryptos with deeper value. Amidst the volatility in the popular meme coins, smart crypto traders will monitor risk and structure their portfolios properly.
Release: The purpose of this content is only to provide knowledge. Readers have to do their own research before making investment decisions.
