NAIROBI (CoinChapter.com) — Elon Musk’s social media activity sparked a new memecoin rally, propelling Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) into gains amid heightened market interest. DOGE recorded a strong price jump to $0.175, reflecting a 10.74% increase in 24 hours. This was a 24.06% rise over the past week. The top meme coin now faces resistance at $0.1756, with market signals pointing to potential consolidation after the rally.
DOGE’s Overbought Signal Hints at Correction Amid Memecoin Rally
Dogecoin, leading this memecoin rally, has emerged as one of the market’s top-performing digital assets. The coin has enjoyed a nearly 15% boost, according to CoinMarketCap.
Following a 33% gain since bouncing off its 100-day Simple Moving Average (SMA), DOGE now faces technical challenges. The Relative Strength Index (RSI) has entered the overbought region. This hints at a possible pullback as traders weigh profits. On-chain metrics from IntoTheBlock show 92% of DOGE holders are in profit. This suggests that some may sell to secure gains, leading to increased supply and potential downward pressure.
Additionally, DOGE’s Market Value to Realized Value (MVRV) ratio, now at a five-month high of 77%. This signals that the asset may soon experience a correction, as historically high MVRV ratios have triggered sell-offs in past rallies.
SHIB Eyes Gains as “Golden Cross” and Pro-Crypto Sentiment Fuel Rally
Shiba Inu (SHIB), trailing DOGE in memecoin market activity, gained during this rally, trading at $0.0000187. SHIB rose over 4% in 24 hours and is up 72% since its Sept. lows. The rally aligns with market optimism over potential pro-crypto policies in the United States. Polymarket data suggests a 66% chance of a Trump election win, a factor analysts say could boost crypto sentiment.
Technically, SHIB’s chart signals further upside, as the token formed a “golden cross” pattern—an event where the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA. Historically, such patterns have preceded bullish rallies. Analysts now eye the $0.000021 level as the next resistance for SHIB, where a successful break could drive the token to retest $0.0000294, a high last reached in May.
PEPE Whale Activity Signals Mixed Sentiment
Pepe (PEPE), a relative newcomer in the meme coin space, has seen mixed activity amid the ongoing meme coin rally. At press time, PEPE traded at $0.000009554, marking a 4% rise in 24 hours, though it remains down 43% from its all-time high of $0.00001718 in May.
Meanwhile, PEPE, one of the newer memecoins, saw a 54% increase in trading volume as whales re-engaged in large transfers. Whale Alert data revealed a single transfer of over 1.2 trillion PEPE tokens to a Binance wallet, potentially signaling increased liquidity but also raising speculation of a possible sell-off. PEPE’s price rose to $0.00000966, up 8.49% in the last 24 hours, though it remains 43% below its all-time high of $0.00001718.
A brief correction could precede a potential 30% rally for PEPE, with the token’s chart forming a symmetrical triangle pattern. A confirmed breakout from this structure might push PEPE’s value toward $0.000012 if demand remains robust.
The memecoin sector, known for its high volatility, reflects renewed interest amid favorable conditions. While bullish patterns are evident across DOGE, SHIB, and PEPE, analysts warn that current overbought conditions may precede a cooling phase.
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