Dogecoin and Shiba Fall as Meme Coin Market Cap Drops Below $70b – A Buy Opportunity?

The combined market capitalization of meme coins, as tracked by CoinMarketCap, has dropped below $70 billion for the first time in months, and investors are wondering if this might be the beginning of the end of the sector’s golden days.

In the past 24 hours alone, the market value of the tokens that make up this category has gone down by -4.9% while losses in the past 30 days currently amount to -41.2%.

The only asset within the top 10 most valuable assets in this segment that has performed positively this year is $TRUMP – which despite being up over +300% year-to-date, is down over -77% since its all-time highs.

This highlights that its 30-day gains are not necessarily indicative of its strength as an investment, since the token was offered at a heavily discounted price back in January and is still dragging some of the upside that it experienced during the first few days after it hit major exchanges.

Meanwhile, the undisputed leader of the category, Dogecoin (DOGE) has experienced year-to-date losses of -21.6% while the popular Pepe the Frog token (PEPE), whose gains exceeded 1,500% in 2024, has lost half of its value since 2025 started.

Is it possible that some of these meme coins may already be poised for a short-term rebound? Let’s take a look at what the technical indicators have to say.

Dogecoin (DOGE) Shows No Sign of Reversal

Dogecoin’s daily chart shows that following a sharp December drop, the price started to recover and managed to make a higher high that pushed DOGE to its local top of $0.4343.

However, since that high was of a smaller magnitude compared to the December peak, the market interpreted it as a sign of weaker demand and prices collapsed right after it.

One of the factors that influenced this decline was the Federal Reserve’s decision to take a neutral stance on interest rates.

DOGE has now broken two important support levels and is currently freefalling. The last support is in the $0.20 area, which served as a floor during last Sunday’s flash crash. This means a downside potential of -18.6%.

Meanwhile, no signal of a trend reversal can be spotted in the Relative Strength Index (RSI) or the MACD, as the latter continues to post lower lows. Though RSI has gotten close to oversold territory, it has not yet crossed past the lower threshold, and is still sitting 24.2% below the signal line that could indicate a buy opportunity.

Shiba Inu (SHIB) Could Reverse

Similarly, the Shiba Inu (SHIB) chart shows a sharp downtrend that resulted in the collapse of token prices after it lost multiple key supports in the past couple of weeks.

However, in the case of SHIB, the negative momentum has decelerated multiple times and the Relative Strength Index (RSI) is much closer to the signal line, which increases the odds of a reversal in the near term.

The dominant pattern at the moment is a falling wedge. This is a high-probability setup that could indicate a trend reversal for SHIB if it resolves to the upside.

The next few days for SHIB could be critical, especially if the RSI crosses above the signal level, as it could be a catalyst for a price spike and we could see a retest of the $0.00001845 resistance line (a former resistance).

For what it seems, considering that these two tokens account for over half the market cap of all meme coins, the odds of a short-term reversal are high. However, the chances of a V-shaped recovery for this entire category are still fairly low.