Why DOGE, SHIB, and PEPE Are Struggling: A Technical Analysis Guide to Understanding Meme Coin Movements

The Current Market Standoff: Where Are Meme Coins Headed?

The meme coin sector is facing significant headwinds as Dogecoin, Shiba Inu, and Pepe enter their second week of consecutive selling pressure. Since the January 4 rally, these tokens have shed momentum with each passing session, leaving traders questioning whether a recovery is in sight. The lack of fresh bullish catalysts across the broader crypto landscape has only intensified the bearish sentiment, pushing these assets toward critical support zones.

Understanding the Technical Signals Behind the Decline

The Role of Technical Indicators in Current Price Action

When analyzing why these three meme coins are struggling to find stability, it’s essential to look beyond the headlines and examine the technical framework. Three key indicators are sending consistent bearish signals:

RSI (Relative Strength Index) measures momentum intensity. When it drops below 50, it suggests sellers are gaining control. For Dogecoin, the RSI has fallen to 48—a clear warning that buying pressure is weakening. Shiba Inu shows similar weakness at RSI 53, trending downward, while Pepe sits at 55 but has plummeted from overbought extremes.

MACD (Moving Average Convergence Divergence) acts as a trend confirmation tool. Pepe has already triggered a sell crossover, with its MACD dipping below the signal line. For Dogecoin and Shiba Inu, the MACD is approaching this danger zone, which would reinforce downside momentum if triggered.

The 50-day EMA serves as a dynamic support/resistance level. Dogecoin has already broken below this line, while both SHIB and PEPE are clinging to theirs—a precarious position that suggests the next leg down could accelerate if these levels give way.

Dogecoin Faces a Critical Test Near $0.1332

Dogecoin is trading around $0.1350, having endured seven consecutive down days that pushed it below the 50-day EMA at $0.1427. The current price is hovering dangerously close to the November 21 low of $0.1332, which previously acted as resistance before flipping into support.

If DOGE holds this level, a technical bounce could retest the 50-day EMA at $0.1427, followed by the November 26 high at $0.1568. However, given the deteriorating momentum signals, this recovery scenario appears less likely in the near term.

If DOGE breaks below $0.1332, the next downside target becomes the December 31 low at $0.1161, representing approximately 14% further downside.

The latest data shows DOGE trading at $0.14 with a 24-hour decline of -1.96%, confirming the ongoing selling pressure.

Shiba Inu Struggles to Hold the 50-Day EMA at $0.00000834

Shiba Inu is in a delicate state, hovering just above the 50-day EMA at $0.00000834. After nearly touching the breakout zone from its falling channel pattern, SHIB is attempting a modest recovery, but the technical setup remains fragile.

On the upside, if buyers successfully defend the 50-day EMA, SHIB could attempt a move toward the October 11 high at $0.0000956. However, RSI at 53 and declining suggests this scenario is unlikely without a broader market catalyst.

On the downside, failure to hold above $0.00000834 would target the October 10 low at $0.00000678, another 19% decline from current levels.

The RSI declining from overbought territory is particularly concerning, as it indicates that the previous buying enthusiasm has already dissipated. The MACD’s approaching signal line crossover could be the final nail in the coffin for the current uptrend attempt.

Pepe Faces Immediate Pressure Below $0.00000500

Pepe is trading just above the $0.00000500 psychological level after giving back all gains from the January 3-4 spike. The situation here is more dire than the other two tokens, with the MACD already in full bearish mode—having crossed below its signal line to flash a sell signal.

Latest data shows PEPE at $0.00 (indicating a very small value) with a 24-hour decline of -8.46%, the steepest among the three, signaling accelerating sell-offs.

The next support zone sits at the 50-day EMA at $0.00000528. A break here would leave PEPE vulnerable to further downside.

For a potential recovery, PEPE would need to overcome resistance at the $0.00000650 supply zone, followed by the 200-day EMA at $0.00000738. However, with momentum firmly negative, a rally to these levels appears premature.

How to Approach Meme Coins During This Uncertain Period

For those asking how to buy meme coins during this volatile stretch, several key considerations emerge:

Timing Matters: Rather than chase falling prices, savvy investors typically wait for confirmation of a technical reversal. This could be RSI bouncing off 30, a MACD crossover turning bullish, or price successfully defending a major support zone.

Risk Management is Critical: Given the seven consecutive down days for all three tokens, position sizing becomes paramount. Consider scaling into positions over time rather than committing capital all at once.

Use Technical Levels as Guides: The support zones highlighted above (DOGE at $0.1332, SHIB at $0.00000834, PEPE at $0.00000500) represent potential entry points if these levels hold on retests.

Watch for Capitulation Signals: Typically, a major selloff ends when volume spikes on down days and RSI reaches extreme lows near 30. Only then do genuine reversal patterns often emerge.

The Bottom Line: Meme Coins Need Time to Stabilize

The meme coin sector remains firmly in seller’s hands, with all three tokens—Dogecoin, Shiba Inu, and Pepe—displaying technical warning signs across multiple indicators. The 50-day EMA is proving to be a critical battleground, and breaks below these levels would signal further deterioration ahead.

For those interested in how to buy meme coins at advantageous prices, patience appears to be the virtue that will be rewarded. Current technical setups suggest waiting for clearer reversal signals before initiating new positions, rather than adding to the existing selling pressure.