Memecoins Shiba Inu (SHIB) and PepeCoin (PEPE) have disappointed bulls over the past 24 hours, suggesting a risk-off mood in the broader crypto market.
SHIB experienced significant price volatility, reaching a peak of 0.00001336 before declining to 0.00001297, with notable high-volume support emerging at the 0.00001310 level overnight.
The support was breached soon before press time, penetrating the bullish upward-sloping higher lows pattern, marking a recovery from the May 31 low of 0.00001226.
The breakdown follows an overnight surge in the SHIB burn rate, which increased by nearly 140%, removing 39.49 million tokens from circulation. Furthermore, open interest in SHIB derivatives increased by 2.03% to 11.36 trillion SHIB (approximately $158.65 million), with Gate.io leading with 54.18% of the total open interest.
Key technical insights
- SHIB exhibited significant price volatility over the 24-hour period, reaching a peak of 0.00001336 during the 14:00 hour on June 3rd before declining to a low of 0.00001297 at 21:00, representing a range of 0.00000039 (2.96%).
- Notable high-volume support emerged at the 0.00001310 level during the 01:00 hour on June 4th, with volume exceeding 573B, well above the 24-hour average of 276B. (The high-volume support was breached soon before press time.)
- The price action formed a descending channel from the 15:00 peak, with resistance at 0.00001320 repeatedly tested and rejected, suggesting continued bearish pressure despite the recent consolidation between 0.00001310-0.00001315.
- Volume spiked significantly at 08:02 with over 14.9B SHIB traded, nearly triple the hourly average, confirming strong buying interest.
PEPE
PEPE's recovery from the May 31 lows gained momentum on Tuesday, but sellers eventually overpowered buyers near the 200-day SMA resistance, pushing the market valuation back to $5.2 billion.
The rejection at the 200-day SMA could invite more selling, potentially yielding a re-test of the 50-day SMA support at $4.64 billion.
That said, the 50-day SMA has recently crossed over the 100-day SMA and is trending upward, hinting at a broader bullish shift in momentum. So, potential dips could be short-lived.
