The meme coin sector entered a sharp technical correction this Wednesday, with Dogecoin (DOGE) and Shiba Inu (SHIB) breaking through fundamental psychological support levels. This retreat has been exacerbated by the persistent weakness of Ether, an asset that many traders use as a gauge for risk appetite in crypto linked stocks. According to market reports, the selling pressure in the speculative segment reflects a capital rotation toward assets with lower volatility and clearer fundamentals.
Dogecoin’s drop below the $0.13 mark occurred after a decisive rejection at the $0.1331 resistance level during early trading hours. Similarly, Shiba Inu mirrored this bearish behavior, losing short-term supports and failing in its attempt to reclaim overhead supply zones. Thus, the meme coin segment absorbed outsized selling pressure today compared to the broader market, demonstrating a concerning lack of relative strength among high-beta digital assets.
DOGE’s trading volume saw a 53% increase, reaching 479.7 million tokens during the price collapse on Wednesday afternoon. This surge in activity, far from representing accumulation, has been identified by analysts as active distribution of assets by large-scale holders and whales. Therefore, the current technical structure of these tokens suggests bearish continuation toward much deeper demand zones unless institutional buying interest appears immediately to provide support.
Can the speculative asset sector stabilize against the uncertainty of global monetary policy?
Despite relative stability in major benchmarks, crypto linked stocks like Coinbase and Hut 8 remain vigilant regarding these liquidity movements. Investors appear to be adopting a “risk-off” stance, especially given Ether’s inability to regain ground against Bitcoin in the current market cycle. On the other hand, the concentrated weakness in speculative assets indicates a deleveraging phase necessary to clear the excess optimism that dominated the previous trading weeks.
Shiba Inu’s technical situation is particularly delicate, as its inability to keep pace with Dogecoin suggests generalized sector-wide pressure. Furthermore, the synchronized decline of these tokens reinforces the view that meme coins are trading as a single speculative risk bucket. Likewise, retail traders have begun executing automatic sell orders, leading to a cascade of minor liquidations that keeps prices under constant downward pressure throughout the session.
Finally, the immediate future of these assets will depend on whether Bitcoin manages to hold and if Ether regains its relative strength in the digital economy. Projections indicate that a sustained close below current levels would invalidate any rebound for meme coins in the short term. Meanwhile, investors must closely monitor critical support levels between $0.1280 and $0.1290 for Dogecoin, which will define the market trend in the upcoming trading sessions.
