SHIB Breaches Key Support as PEPE Faces Rejection at 200-Day SMA
Memecoins Shiba Inu (SHIB) and PepeCoin (PEPE) struggled to maintain upward momentum over the past 24 hours, signaling a potential shift toward risk-off sentiment in the crypto market.
SHIB: Breakdown Amid Volatility and High Burn Rate
Shiba Inu saw a volatile trading session, peaking at $0.00001336 before declining to a low of $0.00001297, spanning a 2.96% range. Despite briefly establishing high-volume support at $0.00001310, that level was breached just before press time, invalidating the bullish pattern of higher lows that had been forming since the May 31 low of $0.00001226.
The breakdown comes in the wake of a notable spike in the SHIB burn rate, which surged 140% overnight, eliminating 39.49 million tokens from circulation. Meanwhile, open interest in SHIB derivatives climbed 2.03% to 11.36 trillion SHIB (roughly $158.65 million), with Gate.io accounting for over half the exposure at 54.18%.
Key Technical Developments:
- SHIB hit its peak at 14:00 UTC on June 3, before reversing to a low by 21:00 UTC, forming a descending channel.
- High-volume support emerged at $0.00001310 around 01:00 UTC on June 4, with 573B SHIB traded, more than double the daily average.
- A notable volume spike at 08:02 UTC saw 14.9B SHIB change hands, nearly triple the average hourly volume—suggesting active buy-side interest, albeit not strong enough to maintain upward momentum.
- Repeated rejections near $0.00001320 kept price action trapped within the descending channel, reflecting persistent bearish pressure.
PEPE: Fails to Sustain Rally Above Key Resistance
PepeCoin’s recovery from its May 31 lows appeared promising early Tuesday but lost steam after hitting resistance at the 200-day simple moving average (SMA). The rejection drove PEPE’s market cap back to $5.2 billion, dashing short-term bullish hopes.
The technical rejection raises the risk of a pullback toward the 50-day SMA, which currently sits near $4.64 billion in market capitalization. However, there’s a silver lining: the 50-day SMA has recently crossed above the 100-day SMA, a pattern often interpreted as a bullish signal, suggesting any dips might be limited.
