Will DOGE, PEPE, and SHIB plummet by 20%? Technical indicators have turned fully bullish, and investors are withdrawing on a large scale.

Amid the overall fluctuations in the Crypto Assets market, DOGE, Shiba Inu, and PEPE meme coins are facing severe downward pressure. Multiple technical indicators and on-chain data suggest that these once-popular Crypto Assets may soon experience a more significant price adjustment.

####The meme coin market is experiencing a wave of capital outflow, and investor confidence is clearly shaken

(Source: Santiment)

Recent data shows that the meme coin market is experiencing a significant outflow of funds, with investor sentiment turning cautious and risk-averse. According to Santiment's latest analysis, the network realized profit and loss for DOGE, Shiba Inu, and PEPE have all shown a clear downward trend, with investors having collectively lost 187.58 million DOGE, 34.31 million SHIB, and 11.4 million PEPE through sales last week.

What is even more concerning is that the profit-sharing ratio of these three meme coins has significantly declined, with DOGE dropping to 78.00%, SHIB remaining at only 19.89%, and PEPE at 34.46%. These figures clearly indicate that holders are facing increasing selling pressure, and market confidence has significantly weakened.

Crypto Assets analyst Li Ming stated: "The meme coin market is at a critical turning point. Unlike in the past, what we are seeing now is not only short-term speculators exiting, but even long-term holders are starting to waver. This widespread loss of confidence may herald a deeper market adjustment."

The derivative market data further confirms this trend. According to CoinGlass statistics, the open contracts of DOGE, Shiba Inu, and PEPE have all decreased by more than 1% in the past 24 hours, dropping to $4.01 billion, $189.5 million, and $542.56 million respectively. This outflow of funds in the derivative market clearly shows that investors are adopting a wait-and-see attitude and are unwilling to take risks in the current uncertain market environment.

####DOGE: Technical indicators face significant tests, the 200-day moving average becomes a key support

(Source: Trading View)

DOGE is currently pulling back from the 50-day Exponential Moving Average (EMA) of $0.2386, down more than 2%. Technical analysis shows that DOGE is facing the risk of testing the 200-day EMA of $0.21955, a level that will be a key support determining its short-term trend.

Market technical analyst Zhang Wei pointed out: "If DOGE cannot hold the 200-day moving average, we may see the price further dip to $0.1909, which would mean a drop of more than 20% since the recent peak."

The technical indicators on the daily chart show a clear bearish signal. The Moving Average Convergence Divergence (MACD) continues to maintain a downward trend, with its signal line also pointing downwards. The continuous expansion of the red histogram indicates that selling pressure is increasing. The Relative Strength Index (RSI) is currently at 44 and is trending downward, indicating that there is still room for further price declines before reaching the oversold area.

It is worth noting that for DOGE to restore its upward trend, it needs to re-establish itself above the R1 pivot level of 0.2501 USD, which could pave the way for further increases to the R2 resistance level of 0.2865 USD. However, in the current market environment, the likelihood of this breakthrough is relatively low.

####Shiba Inu: Breaks below key psychological level, downside risk intensifies

(Source: Trading View)

The situation for Shiba Inu is also not optimistic, as the current trading price has fallen below the psychological barrier of 0.00001200 USD, down about 1%. The direct support level for SHIB is located at 0.00001166 USD, which is the low point from August 3.

Technical analysis shows that if the closing price of SHIB falls below this level, it may further decline to the closing price of June 22 at $0.00001060, which will be a key support area.

Similar to DOGE, the technical indicators for SHIB also show that the bearish momentum is strengthening. The MACD and its signal line have fallen below the zero line, and the RSI is at 39 and gradually approaching the oversold region, all indicating that selling pressure is increasing.

Crypto assets researcher Wang Fang analyzed: "Shiba Inu is currently in a technical disadvantage, with the 50-day EMA of $0.00001282 becoming a strong resistance. Unless there is a significant improvement in overall market sentiment, SHIB may continue to hover at low levels, or even further decline."

####PEPE: Symmetrical Triangle Pattern Faces Breakdown Risk

(Source: Trading View)

PEPE's technical aspects are facing more severe challenges, with its trading price having fallen below the important psychological barrier of 0.00001000 USD, resulting in a loss of over 1% for the day. This frog-themed meme coin is currently trading near the support trend line of a symmetrical triangle formation on the daily chart, which is a key technical position.

Technical analyst Li Qiang warned: "If PEPE closes below $0.00000944, confirming a downward breakout of the triangle pattern, we may see the price accelerate down to the support level of $0.00000887, and it might even test the low of $0.00000758 since May 6."

Currently, PEPE's RSI is at 38, continuing to decline towards the oversold area, indicating that bearish momentum is dominant. Additionally, the MACD and its signal line are both in the negative territory, with the red histogram showing an upward trend, further confirming the strengthening of bearish signals.

It is worth noting that if PEPE can successfully rebound from the trend line, it may retest the 50-day EMA at $0.00001061. However, in the current market environment, the likelihood of such a rebound is relatively low.

####How should meme coin investors respond?

Facing the current downward risk in the meme coin market, investors should maintain a cautious attitude. Crypto Assets investment advisor Zhang Ming suggests: "For investors who already hold these meme coins, now may not be the time for panic selling, but it is crucial to set reasonable stop-loss levels. For investors who have not yet entered the market, it may be necessary to patiently wait for clearer bottom signals to emerge."

Market analysts also point out that the volatility of meme coins is usually higher than that of mainstream Crypto Assets like Bitcoin, and investors should adjust their portfolios based on their own risk tolerance. In the current market environment, diversifying investments and maintaining sufficient cash reserves may be a wiser strategy.

As the cryptocurrency market continues to evolve, the price trends of DOGE, Shiba Inu, and PEPE will be influenced by various factors, including overall market sentiment, changes in the regulatory environment, and social media attention. Investors should closely monitor these factors to make informed investment decisions.