Meme coin traders are feeling the pressure again.
Both Dogecoin and Shiba Inu extended losses Tuesday, accelerating lower after breaking major technical support levels a move that confirms bearish momentum across the meme coin sector.
While the broader crypto market remains volatile, technical charts suggest the selloff may not be over yet.
Dogecoin Breaks Below $0.10 Psychological Support
Dogecoin dropped 4% and fell below the critical $0.10 psychological level, a threshold many traders viewed as key short-term support.
That breakdown signals a significant technical failure.
Several indicators now confirm bearish control:
- Supertrend indicator sits at $0.11958, reinforcing downside bias
- Parabolic SAR at $0.10544 now acts as resistance
- Price action is sliding toward the lower boundary of its descending channel
Horizontal support currently sits near $0.08, but if selling momentum continues, analysts warn that DOGE could test $0.07 next.
Derivatives Market Signals Weakness
Futures and options data also reflect cooling enthusiasm:
- Open interest declined 1.02% to $962.62 million
- Options volume plunged 48.58%
- Binance long/short ratio of 2.1756 suggests many traders bet on a bounce — and are now underwater
For any meaningful recovery, DOGE must:
- Reclaim $0.10
- Break above Supertrend resistance near $0.12
Until then, downside risk remains dominant.
Shiba Inu Shows Extreme Selling Pressure
Shiba Inu fell 2%, trading near $0.00000552, pressing against the lower Bollinger Band — a classic signal of heavy selling pressure.
Technical indicators highlight weakness:
- Supertrend at $0.00000753 remains firmly bearish
- Upper Bollinger Band at $0.00000837 shows how far SHIB has retraced
- A descending trendline caps any short-term rally attempts
Previous support zones have already been broken, increasing the probability of further downside.
Can Token Burns Provide Relief?
Shiba Inu’s burn rate jumped 65.52% in 24 hours, removing 2.5 million SHIB from circulation.
However, with roughly 585.45 trillion tokens still in circulation, burn activity provides only limited immediate price support.
Immediate technical support lies between:
- $0.00000550 and $0.00000600
- A breakdown could push SHIB toward $0.00000500
For a recovery scenario, SHIB would need to:
- Reclaim $0.00000700
- Break above Supertrend resistance
Without that, rallies may remain short-lived.
What This Means for Meme Coins
The breakdown in both DOGE and SHIB reflects broader risk-off sentiment in speculative crypto assets.
Meme coins often move more aggressively than large-cap cryptocurrencies during corrections. When key psychological levels fail, momentum tends to accelerate.
Right now:
- Bearish technical structure dominates
- Derivatives activity is cooling
- Support levels are under pressure
Unless buyers step in soon, meme coins may continue facing short-term downside risk.
