The memecoin sector, particularly Pepe (PEPE) and Shiba Inu (SHIB), has seen notable trading activity, capturing the interest of the investment community. PEPE, with an impressive surge, has increased over 700% in value against the US dollar within the past month. It now encounters major resistance, hinting at a potential price correction. Conversely, SHIB has been on a downwards trajectory, shedding nearly half of its value due to recent market trends.
Pepe’s Surge and Potential Reversal
PEPE’s remarkable ascension has led to a double top pattern and indicators such as the Relative Strength Index signaling a possible downturn in the medium term. Should PEPE’s value dip beneath its support level, a further slide might ensue. Nevertheless, if buying pressure prevails and the coin’s value overtakes its recent peak, an uptrend may ensue, reversing the current bearish trend.
Shiba Inu’s Struggle and Speculative Shift
SHIB, the second most popular memecoin, has been experiencing a decline, with a 45% fall in its valuation. The price movement is underpinned by a downward trend line and a break below a key Fibonacci level, suggesting a loss of momentum among SHIB bulls. Moreover, on-chain data illustrates a pivot towards short-term investment in SHIB, which may increase the likelihood of further price dips.
Analysts predict that if SHIB prices sink below a specific Fibonacci level, a drop to lower support levels could be imminent by the end of March. A potential recovery hinges on the price climbing above the overarching trend line. Technical indicators like the Exponential Moving Average and the Moving Average Convergence Divergence also point to the potential for a sustained corrective phase for SHIB.