Predictions for the top 3 meme coins: Dogecoin, Shiba Inu, and Pepe are preparing for a bullish trend.

Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE) unexpectedly became the focus in the early trading session of the week, as technical signals combined with derivative data hinted at the possibility of the beginning of a new bullish cycle, supported by a growing wave of interest from investors.

Derive data shows increasing demand

Meme coins are becoming the focal point of the derivatives market, as expectations rise that the Fed will lower interest rates on September 17th, combined with news that the Dogecoin ETF fund prepared by Rex-Osprey is set to launch, has sparked a new wave of trading.

According to CoinGlass data, the open contract (OI) of DOGE, SHIB, and PEPE increased by 12%, 4%, and 3% respectively, while the trading volume also surged with double-digit growth.

Open contracts of the top 3 meme coins | Source: CoinGlassNotably, the long/short order ratio in the past 24 hours for all three of these coins has exceeded 1, indicating an increasingly enthusiastic sentiment and growing optimism from investors.

Dogecoin soars on ETF expectations

As of Monday afternoon, Dogecoin (DOGE) recorded an increase of over 2%, extending a nearly 6% recovery from the previous session. The main driving force came from Rex-Osprey's announcement on Thursday regarding the launch plan for the DOGE ETF, which helped the price break out of the accumulation zone at the 0.22597 USD level on the 4-hour chart and move towards testing the resistance at 0.23498 USD.

If DOGE closes strongly above this level, the bullish trend could extend to 0.24300 USD – a price range that was tested on 24/8. Notably, the 50-period EMA is approaching the 200-period EMA, opening up the possibility of forming a "golden cross" (Golden Cross) – a signal that often reinforces a strong recovery in the short term.

The DOGE/USDT chart on the 4-hour timeframe | Source: TradingViewThe MACD indicator also shows increasing green histogram bars, reflecting strengthening buying pressure. Meanwhile, the RSI index at 74 has entered the overbought zone, indicating that the bulls are in control.

However, the reversal scenario still needs to be noted: if DOGE falls below 0.22597 USD, the breakout pattern will be invalidated, pulling the price back to the 200-period EMA around 0.21914 USD.

Shiba Inu aims for a breakthrough of the 200-period EMA

Shiba Inu has just escaped from a descending triangle pattern on the 4-hour chart, while benefiting from a strong inflow of funds into the meme coin group. As of now, SHIB remains above the 100-period EMA at 0.00001244 USD, signaling the potential for a new bullish trend.

To reinforce the recovery momentum, SHIB needs to break through the supertrend line, which is close to the 200-period EMA at 0.00001261 USD. A decisive candle close above this level could open up bullish potential, first targeting the pivot R2 at 0.00001279 USD, and then R3 at 0.00001310 USD.

SHIB/USDT 4-hour chart | Source: TradingViewThe current technical indicators are also supporting a bullish scenario. The MACD shows strong increasing green histogram bars, reflecting an overwhelming buying pressure. Meanwhile, the RSI stands at 58, confirming the bullish trend is forming but still has some room before entering the overbought zone.

On the contrary, if SHIB loses the central pivot point of 0.00001230 USD, the breakout signal of the triangle pattern will be invalidated. At that point, the price is likely to return to test the base line of the pattern around the psychological level of 0.00001200 USD.

Pepe maintains its recovery momentum, aiming for higher levels

Pepe recorded an increase of over 1% in the first trading session of the week, marking a breakout above the resistance line on the 4-hour chart. The meme coin inspired by the frog has surpassed the supertrend line, while also approaching the 100-period EMA at 0.00001001 USD – a signal indicating that the bullish trend is returning.

After reclaiming the important psychological level, Pepe is now targeting the challenge of the 200-period EMA at 0.00001042 USD. If buying pressure continues to be maintained, the price could even extend its bullish momentum to the pivot R3 area at 0.00001112 USD.

PEPE/USDT chart on the 4-hour timeframe | Source: TradingViewSimilar to DOGE and SHIB, the momentum indicators on the 4-hour timeframe all reinforce a bullish outlook. The MACD shows a series of expanding green histograms, while the RSI is at 65 – approaching the overbought zone, reflecting strong buying pressure.

Nevertheless, the risk is still present: if PEPE drops below the psychological support level of 0.00001000 USD, the price may reverse to the S1 zone at 0.00000934 USD, thereby negating the recently established breakout signal.

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