Three of crypto’s largest memecoins are currently grappling with massive selloffs. DOGE and SHIB dropped to their lowest valuations over the last fourteen days. The assets’ latest declines follow Bitcoin’s last dip below $93k. Despite this uncertainty, the memecoin ecosystem continues to display resilience.
Recently, the decentralized exchange (DEX) landscape has experienced significant growth, with Solana DEX volume reaching a new all-time high. Between November 4 and 10, DEXs processed over $41 billion in transactions, a notable increase from the previous week’s $18 billion.
This uptick has propelled the monthly trading volume to an impressive $70.9 billion. Raydium accounted for more than 72% of the total trading volume, while Orca and Lfinity facilitated $7.6 billion and $2.5 billion, respectively.
The surge in transaction volume can be attributed largely to the ongoing popularity of memecoins. New tokens like PNUT and GOAT have attracted fresh investments, fueling speculation about their potential for significant returns.
For instance, a trader who invested $17 in the squirrel token realized an astounding profit of 12,000 times their initial investment. The influx of new tokens on exchanges is also contributing to the heightened interest in the memecoin sector. Binance’s recent listing of $Pnut resulted in an impressive price increase of over 300% within 24 hours.
Additionally, BONK reached a new all-time high during the last intraday session. In terms of specific price movements, BONK began trading at $0.000048 but experienced a slight decline at the start of the day
However, it rebounded, surpassing its previous all-time high (ATH) around $0.000055 and eventually peaking at $0.000057. This latest milestone followed the asset’s listing on the Upbit exchange.
Looking ahead, the memecoin sector is expected to remain dynamic. One significant factor to monitor is the price correlation with Bitcoin.
Historically, movements in Bitcoin’s price are likely to impact the volatility and performance of memecoins. It will be interesting to observe how these assets evolve in the coming days.
Top Three Memecoins
DOGE/USD
Dogecoin is currently positioned for a potential breakout, as recent price trends suggest that the cryptocurrency is preparing for a significant move. After breaking above $0.48, it has since struggled to maintain trading above this mark.
The first attempt occurred on November 12, when Dogecoin began trading at $0.35. Subsequently, it dipped to a low of $0.30 before rebounding. Its latest climb to the highlighted mark was quick and ended in a sharp decline.
As of now, DOGE trades at $0.38 following a significant rejection at its peak price. The following day saw a similar pattern, with the asset gaining over 5% after some corrections.
However, Monday proved to be one of the most negative for Dogecoin, as it experienced a drop of more than 9%. In the days that followed, the price remained relatively stable, trading between $0.40 and $0.34.
This trend was disrupted during the last trading session when Dogecoin opened at $0.37, surged to a high of $0.42, and then retraced. One factor influencing Dogecoin’s movement has been a change in Bitcoin’s price trajectory, which reached a new all-time high of $94,000 during the same intraday session.
Dogecoin exhibits a strong price correlation with Bitcoin, holding a coefficient of 0.99, one of the highest correlations in the cryptocurrency market. Although on-chain metrics are limited, Dogecoin continues to maintain a vibrant community, with its user base growing over 1% in the past week.
Nevertheless, the asset is facing significant selling pressure, as indicated by recent total exchange netflow data, which shows a negative balance exceeding $15 million.
Moving forward, the price correlation with Bitcoin will be critical, especially as enthusiasts of the leading cryptocurrency anticipate further price increases. If these trends continue, Dogecoin could potentially break through the $0.44 barrier and move closer to the $0.70 mark.
SHIB/USD
On November 10, Shiba Inu experienced a significant price increase of 27%. It began trading at $0.000020 and reached a peak of $0.000028. Despite some minor declines, it closed at $0.000026.
The following day, the positive momentum continued, with the cryptocurrency making notable gains. However, it approached $0.000030 but was unable to maintain that level due to substantial selling pressure.
November 12 proved to be one of the most volatile days for the asset, as it plummeted to a low of $0.000024 before rebounding and surpassing a key resistance level. Ultimately, it ended the day with losses that exceeded 5%. The following day, the memecoin experienced further declines.
In the days that followed, Shiba Inu began trading within a defined channel, fluctuating between $0.000022 and $0.000026. After several attempts to break out of this pattern over the past week, the asset has struggled to do so, raising concerns about the potential for a breakdown in the support level.
Market indicators present mixed signals regarding the asset’s future price movements. The moving average convergence divergence indicator is currently showing a bearish divergence, suggesting that further declines could be on the horizon.
Conversely, price action indicates possible accumulation above $0.000023, which could lead to a recovery phase. The relative strength index (RSI) supports the notion of a potential upward price movement, currently measuring at 58, indicating that there is room for increases.
Additionally, the Bollinger Band analysis reinforces this outlook, as the upper band is situated further from the current prices. Recent market trends also show Bitcoin approaching the critical $100,000 mark.
The bulls appear to be recovering from prior exhaustion, which could lead to a flow of funds into the memecoin as Bitcoin nears this significant price level. The high correlation of 0.92 between Shiba Inu and Bitcoin may have a substantial impact on the asset’s performance in the coming days.
PEPE/USD
PEPE has experienced a notable decline over the past five days, a trend that began after a substantial surge on November 15. Initially starting the day at $0.000020, the asset surged to $0.000023 before plummeting to a low of $0.000018.
The price decline commenced the day following the peak, when values fell from $0.000023 back to $0.000020, effectively erasing nearly all of the previous gains. This downward trend has persisted for an additional four days, leading to a cumulative loss exceeding 12%.
The Moving Average Convergence Divergence (MACD) indicator suggests that further declines may be anticipated in the coming days, as the 12-day Exponential Moving Average (EMA) is decreasing and may soon cross the 26-day EMA. This downward movement aligns with current readings from the MACD.
However, other indicators hint at a potential reversal in price direction. The Relative Strength Index (RSI) currently stands at 65, indicating that there is still potential for price increases. A further retracement may be necessary to establish a robust recovery.
Supporting this assertion, the Bollinger Bands indicate that the upper band is positioned significantly above current price levels. Onchain data from IntoTheBlock paints a bullish picture despite the ongoing price declines, with three out of four key metrics currently showing positive trends.
Notably, large transactions have surged by over 12% in the last 24 hours, and there has been an increase in bullish concentration regarding the asset during this time.
Additionally, PEPE maintains a price correlation of 0.94 with Bitcoin, suggesting that movements in Bitcoin’s price will likely influence PEPE’s value as well. This correlation is especially pertinent given that Bitcoin is expected to experience significant gains at crucial price levels.
In summary, PEPE appears to be on the verge of a significant price movement, with forecasts indicating a potential surge above $0.000030 in the upcoming run.
