fxstreet.com
Meme coins risk a deeper correction on Wednesday as the broader crypto market struggles to regain bullish momentum amid uncertainty over the US-Iran peace deal. Dogecoin ($DOGE) continues to struggle below key Exponential Moving Averages (EMAs), while Shiba Inu ($SHIB) risks extending its correction after failing to sustain a rebound from its consolidation range. Meanwhile, Pepe ($PEPE) closes below the key support zone, suggesting further losses ahead.
Dogecoin faces rejection from the 50-day EMA
Dogecoin price failed to close above the key 100-day Exponential Moving Average (EMA) at $0.105 and declined by over 6% in the previous week. As of this week, $DOGE continues to face rejection from the previously broken 50-day EMA at $0.103, and has declined slightly to $0.101 on Wednesday.
If $DOGE continues to correct, it could extend the losses toward the key psychological level at $0.090.
The Relative Strength Index (RSI) on the daily chart reads 41, below the neutral level of 50, indicating bearish momentum gaining traction. The Moving Average Convergence Divergence (MACD) also showed a bearish crossover on May 16, which remains intact, supporting the bearish outlook.
On the other hand, if $DOGE recovers, it could extend the advance toward the 100-day EMA at $0.105.
Shiba Inu faces rejection from the previously broken lower consolidation boundary
Shiba Inu corrected over 2% and closed below the lower boundary of the consolidation range at $0.0000056 in the previous week. $SHIB extended its correction after retesting the broken level earlier this week, trading lower at $0.0000055 on Wednesday.
If the lower consolidation boundary continues to hold as resistance, $SHIB could extend losses toward the February 6 low at $0.0000050.
Like Dogecoin, $SHIB’s momentum indicators, RSI and MACD, show bearish momentum gaining traction.
However, if $SHIB recovers and closes above the lower consolidation boundary at $0.0000056 on a daily basis, it could extend the advance toward the 50-day EMA at $0.0000060.
Pepe momentum indicators project deeper losses
Pepe price corrected over 2.2% on Tuesday, extending its losses from the previous week to close below the daily support at $0.0000035. At the time of writing on Wednesday, $PEPE edges below this level.
If the $0.0000035 level holds as resistance, $PEPE could extend the losses toward the April 7 low at $0.0000033.
Like Dogecoin and Shiba Inu, Pepe’s momentum indicators, RSI and MACD, also support a negative outlook.
On the other hand, if $PEPE recovers, it could extend the recovery toward the 50-day EMA at $0.0000038.