Dogecoin, Shiba Inu and Pepe are at risk of breaking down the monthly support level.

Prominent meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are experiencing significant losses during a widespread sell-off in the crypto market. Currently, DOGE, SHIB, and PEPE are hitting key support levels, facing the risk of deeper declines if the overall market sentiment continues to worsen.

Investors withdraw from meme coin

In the context of a correcting market, meme coins are often the leading group in the downward trend due to their high volatility and significant impact from speculative sentiment. Data from CoinGlass shows that in the past 24 hours, the open interest (OI) of the futures contracts for DOGE, SHIB, and PEPE decreased by 3%, 12%, and 9%, respectively, to 1.75 billion USD, 78.52 million USD, and 242.12 million USD. The decline in open interest reflects a decrease in the nominal value of the outstanding contracts, while also indicating that traders have become more cautious, temporarily withdrawing from the market.

Source: CoinGlass## Dogecoin returns to monthly support level as bears take control

Dogecoin (DOGE) is currently trading around 0.18000 USD at the time of writing on Friday, after four consecutive sessions of fall. This correction coincides with the 50-day exponential moving average (EMA) crossing below the 200-day EMA, forming a “death cross” pattern — a signal that the short-term downtrend is becoming more pronounced.

On Thursday, DOGE continued to test the support zone of 0.17816 USD — the low of October 11 — and this has been the third touch this month. If the closing price falls below this level, it is highly likely that this meme coin will extend its fall to the zone of 0.14270 USD, corresponding to the low of June 22.

DOGE/USDT Daily Chart | Source: TradingViewOn the 4-hour timeframe, technical indicators show that buying pressure is weakening: MACD has turned towards the signal line, posing a risk of a bearish crossover, while RSI is at 39, oscillating between neutral and oversold, reflecting the cautious sentiment of the market.

However, if DOGE can bounce back from the 0.17819 USD range, the bulls could push the price to retest the 0.20869 USD mark — the low established on August 19.

Shiba Inu recovers towards psychological milestone

Shiba Inu recovered back to the important psychological level of 0.00001000 USD on the 4-hour chart, after facing a 4% fall on Thursday. At the time of writing, SHIB recorded a slight increase of 1% in Friday's session, with the bulls determined to reclaim this psychological threshold.

SHIB/USDT chart 4-hour | Source: TradingViewThis meme coin is still struggling to break through the S1 Pivot Point at 0.00000987 USD, after bouncing from the low on October 17 near 0.00000924 USD. New buying pressure has emerged after the previous sell-off, giving SHIB a chance to recover. The MACD line is approaching the signal line, heading towards a potential crossover and signaling a new uptrend, while the RSI at 42 indicates a V-shaped reversal from the oversold region.

If an uptrend forms, SHIB may face resistance levels from the 50-period EMA and the 200-period EMA, at 0.00001015 USD and 0.00001085 USD, respectively.

Pepe at a key support level, facing the risk of further losses

On Friday, Pepe recorded a 2% increase after experiencing four consecutive falls on the daily chart. The meme coin inspired by the frog is currently maintaining support at the S2 Pivot Point, at the level of 0.00000645 USD – a threshold that has been defended multiple times since October 11.

However, the current adjustment trend still poses risks; if the closing price falls below this level, PEPE could slide down to 0.00000653 USD – the bottom recorded on 11/3 – and even head towards the S3 Pivot Point at 0.00000404 USD.

PEPE/USDT daily chart | Source: TradingViewThe technical indicators on the daily chart are also warning of strong selling pressure: RSI remains around 36, close to the oversold area, while MACD shows signs of reversal, posing a risk of forming a bearish crossover.

On the contrary, if PEPE bounces back from 0.00000645 USD, this meme coin has the chance to extend its recovery trend, aiming for the S1 Pivot Point at 0.00000788 USD.

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