Is the Memecoin Market Losing Momentum?
Selling pressure has increased in the meme coin market in recent hours as Bitcoin has retreated from its peak. The price of PepeCoin and Shiba InuCoin fell sharply as whales and short-term holders dumped their holdings, causing the price to drop sharply. Still, analysts predict a strong recovery as buyers look to take advantage of the current dip.
Memecoin market liquidations surge
Liquidations of long positions increased as selling pressure surged in the cryptocurrency market. According to Coinglass, Pepe’s liquidations totaled more than $1.8 million, of which $1.3 million went to buyers. Meanwhile, SHIB token liquidations totaled $763,000, with buyers accounting for $500,000.
Data from IntoTheBlock shows that large transaction volumes for both PepeCoin and Shiba Inu have declined in recent days. Specifically, Pepe’s whale trading volume plummeted from a peak of $557 million to $176 million, while SHIB’s whale interest fell from $368 million to $156 million in a week.
A significant decrease in whale activity strengthened resistance levels, causing prices to fall sharply. However, following the sharp post-election rally, the recent downturn could present a strategic buying opportunity. As a result, analysts expect the market to recover strongly soon.
Pepe price analysis
Pepe coin has been falling in recent hours and faces strong resistance at the $0.00002 mark. However, buyers are trying to stabilize the price at the 23.6% Fibonacci retracement level. Currently, Pepe is trading at $0.0000192, down more than 2.1% in the past 24 hours.
The downward trajectory of the 20-day exponential moving average (EMA) at $0.0000197 coupled with the relative strength index (RSI) in bearish territory suggests that sellers have the upper hand. If the buyers manage to maintain the price around $0.0000178, the PEPE/USDT pair may rebound towards $0.00002 and possibly even extend to $0.000025.
Conversely, if sellers manage to sink the price below $0.0000178, increased selling pressure could lead the price to drop to the 50% Fibonacci level of $0.000015 and possibly further to the 61.8% Fibonacci retracement level.
Shiba Inu Price Analysis
Although the price of SHIB rebounded from the recent support line, it still struggled to hold the $0.000026 level. As of writing, SHIB price is trading at $0.0000255, down more than 0.6% in the past 24 hours.
For further gains, buyers will need to push the price above the $0.000026 resistance, setting the stage for a revisit to the $0.000029 mark. A successful close above $0.000029 would complete a bullish inverted head and shoulders pattern that could push the price towards $0.0000395 and towards the $0.000047 target.
On the other hand, if the price declines and falls below the 200-day EMA, it would indicate that bears are taking control. This could cause the SHIB/USDT pair to fall towards the simple moving average (SMA) at $0.000022.
