Memecoins
Why are memecoins down today? Dogecoin and Shiba Inu in the spotlight
- DOGE, SHIB, and PEPE have seen significant price corrections.
- The overall social volume and weighted sentiment around both tokens has decreased significantly.
The memecoin sector is one of the most profitable sectors of the cryptocurrency market. The entire sector has seen significant growth since the beginning of the year.
Memecoin industry is bleeding
However, over the past 24 hours, the price of Dogecoin [DOGE], Shiba Inu [SHIB] And Grandpa [PEPE] experienced a double-digit decline.
Source: CoinMarketCap
At press time, DOGE was trading at $0.1092. Its price has been hovering around the $0.10971 level for the past few days. If the price manages to break above this level, it could soon reach the $0.13061 level.
The price of DOGE has been declining since May 26. During this period, DOGE has posted several lower lows and lower highs, indicating a bearish trend.
It remains to be seen whether DOGE can reverse this trend in the near future. The RSI (Relative Strength Index) for DOGE has been increasing over the past few days, implying that the bullish momentum around DOGE has been strengthening.
The CMF (Chaikin Money Flow) of the DOGE token also increased during this period, indicating that the money circulating in DOGE has increased significantly.
Source: Trading View
SHIB exhibited a similar trend in terms of price. After May 30, SHIB price exhibited a similar bearish trend.
However, the trend reversal potential for SHIB was much higher. The RSI for SHIB climbed to 58, meaning the bullish momentum has not weakened.
Alongside this, CMF was also surging, suggesting that, like DOGE, money flowing into SHIB had also increased.
For SHIB to reverse its current trend, it would need to retest the $0.0000167 levels several times before it could bounce further.
Source: Trading View
PEPE price saw a similar move and indicators also suggested an increase in money flows and bullish momentum for PEPE. This highlighted the strong correlation between the leading memecoins in the sector.
Let’s look at social data
The social volume of each of these tokens has dropped significantly, indicating that the popularity of these memecoins has declined significantly in the past few days.
Read Shiba Inu [SHIB] Price forecast 2024-25
Despite this, the positive sentiment around DOGE has increased significantly, indicating that the number of positive comments around the token has increased. PEPE has also seen a similar increase in positive sentiment.
In contrast, the weighted sentiment around SHIB has fallen significantly.
Source: Santiment