In recent hours, the meme coin market has experienced increased selling pressure following Bitcoin’s drop from its peak. Prices for Pepe and Shiba Inu coins have significantly fallen as both whales and short-term holders have been offloading their holdings, leading to a sharp decrease. Nonetheless, analysts predict a strong recovery as buyers look to capitalize on the current dip.
Liquidation Surges in the Memecoin Market
As selling pressure surges in the cryptocurrency market, there has been an increase in long position liquidations. According to Coinglass, Pepe experienced total liquidations exceeding $1.8 million, with $1.3 million attributed to buyers. Meanwhile, the SHIB coin saw a total of $763,000 in liquidations, with buyers accounting for $500,000 of that amount.
Data from IntoTheBlock indicates a decline in large transaction volumes for both Pepe coin and Shiba Inu in recent days. Specifically, Pepe’s whale transaction volume plummeted from a peak of $557 million to $176 million, while SHIB’s whale interest fell from $368 million to $156 million within a week.
This significant reduction in whale activity has strengthened resistance levels, contributing to a sharp price drop. However, following substantial gains after the election, the recent downturn may present a strategic buying opportunity. Consequently, analysts anticipate a robust recovery in the market soon.
Pepe Price Analysis
The Pepe coin has been experiencing a decline in recent hours, facing strong resistance at the $0.00002 mark. However, buyers are attempting to stabilize the price at the 23.6% Fibonacci retracement level. Currently, Pepe is trading at $0.0000192, having fallen by over 2.1% in the last 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 buyers manage to hold the price around $0.0000178, the PEPE/USDT pair could potentially rebound to $0.00002 and possibly extend to $0.000025.
Conversely, if sellers manage to drive the price below $0.0000178, increased selling pressure could lead the price to drop to the 50% Fibonacci level at $0.000015, and possibly further to the 61.8% Fibonacci retracement level.
Shiba Inu Price Analysis
Though the price of SHIB rebounded from the recent support line, it struggles to hold above the $0.000026 level. As of writing, SHIB price trades at $0.0000255, declining over 0.6% in the last 24 hours.
For further gains, buyers need to push the price above the resistance at $0.000026 to set the stage for revisiting the $0.000029 mark. Successfully closing above $0.000029 would complete a bullish inverted head-and-shoulders pattern, potentially sending the price toward $0.0000395 and reaching the target of $0.000047.
On the other hand, a downturn in price that breaks below the 200-day EMA would suggest that the bears are taking control. This could lead the SHIB/USDT trading pair to decline toward the simple moving average (SMA) at $0.000022.
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