Meme Coin Market Dead? Top 5 Reasons Dogecoin, Shiba Inu, and Pepe Are Crashing

The meme coin market is facing significant pressure amid the broader crypto industry crash. Popular meme coins like Dogecoin, Shiba Inu, and Pepe Coin have experienced steep market losses, creating widespread financial panic. What forces are responsible for this current downturn?

Meme Coin Market in Trouble

The crypto market is currently experiencing another collapse driven by the increasing geopolitical conflicts; meme coins face the same challenges. The meme coin market experienced a substantial decline of 9%, resulting in a total market capitalization decline to $29.14 billion. As per CoinMarketCap data, the major tokens, Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe Coin (PEPE) saw their prices drop significantly, mirroring the trend of Bitcoin, Ethereum, and XRP.

Dogecoin currently trades at $0.08875 after experiencing a major one-day drop of almost 10%. The meme token has shown a stronger decline during the past week and month, which reached 12% and 27%, respectively. This downward pressure comes despite a recent Dogecoin price prediction, which projected the token to surpass the $0.20 threshold.

Shiba Inu experiences the same downward trend, affecting the SHIB price, which is currently at $0.000005497. The meme coin has experienced a daily decline of 9.12%, but its total losses reached 17% for the week and 27% for the month.

Pepe Coin currently trades at $0.000003475 after experiencing a 10% daily decline, a 21% weekly drop, and a 27% monthly decrease. The decline demonstrates that even the most successful meme coins continue to display strong reactions towards general market changes and shifts in investor attitudes.

Why DOGE, SHIB, and PEPE Are Down Today?

There are five main factors that explain why top meme coins such as Dogecoin, Shiba Inu, and Pepe Coin currently experience a downtrend in their value. The following five reasons explain the situation:

Broader Crypto Market Crash

The current meme coin market crash is primarily driven by the broader trends. The crypto market entered another decline despite showing recent positive developments. The three main assets, Bitcoin, Ethereum, and XRP, experienced major value drops.

Rising Israel-Iran Tensions

One of the main reasons for the broader crypto industry correction and the subsequent meme coin market crash is the US-Israel’s missile attack on Iran. As CoinGape reported earlier today, this geopolitical issue has pushed the prices of top tokens, including Ethereum, down to severe lows.

Sector Rotation Away from Meme Coins

Another major reason is that investors are increasingly moving their funds from meme coins into other crypto or investment options. This shift is evident as there is a noticeable increase of 20.49% in selling volume. This indicates that more traders are cashing out of high-risk meme tokens in favor of safer assets.

Technical Weakness and Support Breaks

Meme coins such as DOGE, SHIB, and PEPE have recently broken through important technical support levels. These include moving averages and Fibonacci swing lows. The breakdown of these levels causes automatic selling, which increases downward price movement.

Declining Hype and Market Sentiment

Meme tokens depend on social media popularity and community-based enthusiasm to gain traction. The market currently displays fear because traders approach the market with caution. The decreased excitement level creates a lower demand for buying, which makes it difficult for meme coins to recover.