Why are memecoins down today? Dogecoin, Shiba Inu in focus

• DOGE, SHIB and PEPE witnessed significant corrections in terms of price.
• Overall social volume and weighted sentiment around both the tokens fell significantly.

The memecoin sector has been one of the most profitable space in the crypto market. The whole sector witnessed significant growth since the beginning of the year.

Memecoin sector bleeds

However, in the last 24 hours, the price of  Dogecoin [DOGE],  Shiba Inu [SHIB]

Source: CoinMarketCap

At press time, DOGE was trading at $0.1092. Its price had been hovering around the $0.10971 level over the last few days, if the price manages to break past this level, it could make its way up to the $0.13061 level soon.

The price of DOGE has been falling since the 26th of May. During this period, DOGE exhibited multiple lower lows and lower highs, indicative of a bearish trend.

It remains to be seen whether DOGE can reverse this trend anytime soon. The RSI (Relative Strength Index) for DOGE rose over the last few days, implying that the bullish momentum around DOGE was growing.

The CMF (Chaikin Money Flow) for the DOGE token also surged during this period, indicating that the money flowing into DOGE significantly increased.

Source: Trading View

SHIB showcased a similar pattern in terms of price. After the 30th of May, the price of SHIB showcased a similar bearish trend.

However, the potential for a reversal for SHIB was much higher. The RSI for SHIB climbed up to 58 which meant that bullish momentum has not waned.

Coupled with that, CMF was also surging which suggested that similar to DOGE, money flowing into SHIB had also grown.

For SHIB to reverse its current trend, it would have to re-test the $0.0000167 levels multiple times before it can rally further.

Source: Trading View

PEPE’s price exhibited similar movement and indicators also suggested rising money flow and bullish momentum for PEPE. This highlighted the high correlation the top memecoins in the sector had with each other.

Looking at the social data

The social volume for each of these tokens fell materially indicating that the popularity of these memecoins dropped significantly in the last few days.

Read Shiba Inu’s [SHIB] Price Prediction 2024-25

Despite this, the weighted sentiment around DOGE grew significantly indicating that the number of positive comments around the token had surged. PEPE also saw a similar surge in positive sentiment.

On the other hand, weighted sentiment around SHIB fell significantly.

Source: Santiment