The crypto market remains in a struggling phase, as the past day was marked by a significant outflow of liquidity.
According to Coinglass, $860 million worth of positions were wiped out in the past 24 hours, while open interest across the market dropped by $5.25 billion during the same period.
The memecoin market was not spared, recording a collective 5.44% decline to $67.04 billion. Bearish volume surged by 78% to $11.53 billion, signaling strong downward momentum.
Analysis shows that the top three memecoins by market capitalization were also affected, with all three assets firmly under bearish pressure. This adds further evidence that the sector could see deeper losses. FinanceFeed examined these tokens to assess their potential.
Dogecoin Faces Breakdown as $0.22 Support Fails
DOGE remains in a precarious position, trading below the $0.22 support level on the chart.
At press time, DOGE was heading toward a lower support floor within a bullish triangle pattern visible on the 4-hour chart.
In the derivatives market, conditions appear strongly bearish, underscored by a wave of liquidations against long positions.
Data from Coinglass shows that bullish DOGE traders lost $14.17 million over the past 24 hours.
Analysis suggests the recent outflow could push DOGE toward its base support level. Presently, DOGE has filled a buy orders worth $33.62 million across exchanges. This has already triggered some activity, hinting at the potential for a pullback rally.
Shiba Inu Declines Sharply Amid Liquidity Outflows
Shiba Inu (SHIB) shares a similar chart structure with DOGE, forming a broad bullish triangle pattern while trending downward.
Despite this formation, the outlook for SHIB remains steeply bearish, as the decline has coincided with a major liquidity outflow.
In the derivatives market, SHIB saw $11.37 million in liquidations over the past day, dragging open interest down to $173.29 million.
Spot market investors were also bearish. Unlike DOGE, SHIB holders sold $1.21 million worth of tokens within the same period. A death cross pattern also formed on the Moving Average Convergence Divergence (MACD) chart, pointing to further downside.
For now, it remains unlikely that SHIB’s support level within the bullish pattern will hold, given the prevailing bearish sentiment.
Pepe Holds Key Support, Hints at Possible Rebound
The ERC-20 token, Pepe (PEPE) shows relative strength, currently trading around its ascending support line, a zone that has triggered rallies on four previous occasions.
Technical indicators reinforce the possibility of an uptick. Both the Money Flow Index (MFI) and the Accumulation/Distribution (A/D) ratio suggest inflows are outweighing outflows.
The MFI stands at 51.44, above the neutral zone, indicating stronger inflows into PEPE. Similarly, the A/D indicator shows trading volume has risen to 998 billion PEPE. A high positive A/D reading often aligns with a bullish market outlook, supporting the case for a potential rebound.
Memecoin Market Continues to Struggle
Overall, the weighted average on Artemis shows that the memecoin market could continue trending lower, with its performance against other assets remaining at -8.1%.
This suggests traders should remain cautious, even with the bullish outlook on some memecoins, and seek additional confluence before determining potential market direction.