Dogecoin, Shiba Inu, Pepe drop sharply as Bitcoin loses momentum

Meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are extending the weakening trend from last week, with approximately 3% decline during Monday’s trading session. Currently, these assets are still trading below key moving averages, indicating that selling pressure has not eased and prices are likely to continue retreating to the nearest support zones to find new equilibrium points for the trend.

The poor performance of DOGE, SHIB, and PEPE reflects the overall market correction, amid Bitcoin (BTC) unexpectedly breaking the $93,000 mark on Monday. This weakening wave suggests that the previous rally, mainly leveraged, was insufficient to sustain momentum, leading to widespread profit-taking pressure across the cryptocurrency market.

Dogecoin faces deeper correction risk as selling pressure increases

Dogecoin is down about 3% at the time of writing, marking its sixth consecutive correction session and indicating that selling pressure remains high. Currently, DOGE is trading below the 20-day EMA at $0.1375 and the 50-day EMA at $0.1417. The fact that both moving averages are trending downward maintains a bearish trend structure, thereby limiting any short-term recovery efforts. Notably, the 200-day EMA at $0.1718 is also turning downward, further reinforcing the medium-term negative outlook.

Daily DOGE/USDT chart | Source: TradingView In terms of momentum, the MACD indicator has fallen deep into negative territory and continues to widen, with the MACD line below the signal line around zero – a sign that the downward momentum is intensifying. Meanwhile, the RSI has retreated to 39, reflecting increasing selling pressure and approaching oversold levels.

To improve the current trend, DOGE needs to close the daily candle above the descending trend line connecting the peaks formed on 10/27 and 1/14. Otherwise, if the price breaks below the December 31 low at $0.1161, Dogecoin risks sliding further toward a lower bottom around $0.0950, corresponding to the October 10 low.

Shiba Inu extends downtrend amid negative momentum

Shiba Inu has decreased nearly 3% at the time of writing during Monday’s trading session, following a roughly 4% plunge last week. Notably, the 20-day EMA has turned upward and converged with the 50-day EMA right around the current price — a technical signal indicating that selling pressure is returning and the short-term trend lacks recovery momentum.

Daily SHIB/USDT chart | Source: TradingView In a negative scenario, if the correction continues, SHIB is likely to retreat to test the October 10 low at around 0.00000678 USD. Momentum indicators also do not show positive signals: the MACD line and signal line are nearly overlapping around zero, with the histogram flat, reflecting a standoff. Meanwhile, the RSI at 43 continues to weaken, indicating diminishing buying power.

Conversely, a clear breakout above the EMA 20 and EMA 50 cluster — currently compressed around 0.00000836 USD — could serve as a key catalyst, triggering a new upward wave for SHIB in the short term.

Pepe’s downtrend becomes more evident

PEPE continues to face strong selling pressure, officially entering its third consecutive week of decline. At the time of writing, this frog-themed meme coin has lost about 4% on Monday, also losing the 50-day EMA at 0.00000541 USD — a negative technical signal.

Daily PEPE/USDT chart | Source: TradingView In a prolonged downtrend scenario and if the price falls significantly below the psychological support at 0.00000500 USD, PEPE risks revisiting the December 18 low around 0.00000363 USD. Momentum indicators continue to reinforce the negative outlook: the MACD has crossed below the signal line and is heading toward zero, with the histogram bars expanding in the negative zone. The RSI has retreated to 43 and fallen below the neutral level, indicating that the bears are clearly in control.

On the other hand, the 20-day EMA around 0.00000567 USD is expected to become a near-term resistance zone, potentially limiting any short-term recovery efforts.