The crypto market has been experiencing a severe downturn, affecting many coins, especially meme-based ones. Shiba Inu (SHIB) and Pepe (PEPE) are among the worst-hit tokens, losing significant value in the past week.
Even Dogecoin (DOGE), the most popular meme coin, has not been spared from the market turmoil, as it saw its price drop by more than 16.23% in seven days.
PEPE was one of the fastest-growing meme coins in April and May this year, reaching a market capitalization of $1.6 billion at its peak. However, the token has since lost its momentum and faced the harsh reality of the market conditions.
According to CoinMarketCap, PEPE’s price is down by 3.44% in the past day, but it was still down by more than 23.57% in the past week. Moreover, PEPE’s price declined by 28.38% in the past month, reducing its market cap to $422.4M.
The technical analysis of PEPE’s daily chart shows that the token is trading below the 9-day EMA line. It could be a bearish sign. If PEPE can break above this line, it may turn the $0.00000129 level into a support zone in the next 48 hours.
This could also pave the way for PEPE to reach $0.0000019352 in the following week with enough buying pressure. However, if PEPE fails to overcome the 9-day EMA line, it may face a further drop to the next key support level. In that case, PEPE’s price could fall to $0.0000009809 in the next few days.
SHIB Struggles To Recover From Bearish Flag
SHIB, another meme coin that gained popularity earlier this year, has also been struggling to cope with the market crash. According to CoinMarketCap, the SHIB’s price is $0.000007938 at the time of writing, after a 4.59% decrease in the past 24 hours. SHIB’s weekly performance is also negative, as it lost 21.63% of its value.
A bearish flag pattern was formed on SHIB’s daily chart last week, indicating a potential continuation of the downtrend. This happened after the 9-day EMA line crossed below the 20-day EMA line on 22 August 2023, which is a bearish crossover. As a result, SHIB may test the critical support level at $0.00000781 in the next few days.
This scenario will be invalidated if SHIB can close a daily candle above $0.00000882. It would signal a reversal of the trend. If that happens, SHIB may have a chance to climb to $0.00001023 in the next week.