Dogecoin and Shiba Fall as Meme Coin Market Cap Drops Below $70b – A Buy Opportunity?

However, since that high was of a smaller magnitude compared to the December peak, the market interpreted it as a sign of weaker demand and prices collapsed right after it.

One of the factors that influenced this decline was the Federal Reserve’s decision to take a neutral stance on interest rates.

DOGE has now broken two important support levels and is currently freefalling. The last support is in the $0.20 area, which served as a floor during last Sunday’s flash crash. This means a downside potential of -18.6%.

Meanwhile, no signal of a trend reversal can be spotted in the Relative Strength Index (RSI) or the MACD, as the latter continues to post lower lows. Though RSI has gotten close to oversold territory, it has not yet crossed past the lower threshold, and is still sitting 24.2% below the signal line that could indicate a buy opportunity.

Shiba Inu (SHIB) Could Reverse

Similarly, the Shiba Inu (SHIB) chart shows a sharp downtrend that resulted in the collapse of token prices after it lost multiple key supports in the past couple of weeks.