Dogecoin, Shiba Inu and Pepe plummet as whales exercise caution

The “blue chips” in the meme coin group such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have been unable to maintain the recovery that started at the beginning of the week, as the entire crypto market is adjusting. The decrease in open interest (OI) in the derivatives market, along with profit-taking moves from large wallets and signs of weakened buying pressure, indicate the risk of a deeper correction for these three coins.

Large investors lose confidence in Dogecoin, Shiba Inu, and PEPE

Large wallet investors — often referred to as “whales” — always play a guiding role in market trends through their buying and selling moves. However, at this point in time, this group seems to be gradually losing faith in the leading meme coins, increasing the risk of a deep correction for DOGE, SHIB, and PEPE.

Data from Santiment shows that Dogecoin wallets holding over 1 billion tokens have decreased their ownership share from 46.75% to 46.28% of the total supply since October 1. For Shiba Inu, the group holding between 1 million and 1 billion SHIB has also lowered their holding percentage from 2.83% to 2.822%, while the “whale” group holding over 1 billion SHIB still maintains control at 97.16%.

For Pepe, a similar trend is occurring: wallets holding between 1 million and 1 billion PEPE decreased their ownership ratio from 3.84% to 3.764%, while the largest wallet group slightly increased their control ratio from 96.15% to 96.23% since the beginning of October.

Distribution of meme coin supply | Source: SantimentOverall, the data shows a “risk-off” sentiment (risk-off) is spreading among the “whale” group of meme coins, reflecting caution before the increasingly unpredictable fluctuations of the crypto market.

The risk market is causing retail investors to withdraw from meme coins

When the market becomes highly volatile, meme coins are often the first group to face sell-off pressure, as much of their value is based on community sentiment – a factor that is easily fluctuated and prone to excessive hype. The gradual loss of interest from retail investors may indicate that the correction has not yet reached its bottom.

According to data from CoinGlass, the open contract (OI) – representing the total nominal value of open futures contracts – has decreased by 2% with DOGE, 5% with SHIB, and 6% with PEPE, down to 1.85 billion USD, 76.02 million USD, and 209.67 million USD.

Derivatives data of meme coin | Source: CoinGlassThe decrease in OI indicates that investors are shrinking their risks, possibly by reducing leverage or partially closing positions, reflecting the widespread cautious sentiment in the meme coin market.

Technical Analysis: Dogecoin, Shiba Inu and Pepe Face the Risk of Falling Deeper

Dogecoin (DOGE)

DOGE is unable to hold above the psychological support level of 0.2000 USD, while also creating lower highs on the 4-hour chart — thus forming a downtrend line connecting with the peak established on Thursday. As of the time of writing (Wednesday), DOGE has decreased by nearly 1%, continuing the decline of 2.87% from the previous session.

Daily DOGE/USDT Chart | Source: TradingViewCurrently, the correction is approaching the support zone of 0.1781 USD — the lowest level recorded on October 12. Technical signals reinforce the downward trend: the MACD indicator has crossed below the signal line, reflecting weakening upward momentum, while the RSI at 45 indicates increasing selling pressure and still has room to fall before entering the oversold territory.

In the event of a bounce back, DOGE needs to break above the Tuesday high at 0.2056 USD to confirm a break of the downtrend line, thereby opening up the opportunity towards the next resistance level at R1 Pivot Point – 0.2172 USD.

Shiba Inu (SHIB)

As of the time of writing (Wednesday), SHIB is trading below the psychological level of 0.00001000 USD, indicating the risk of entering a new downtrend cycle in the descending channel pattern on the 4-hour frame. The nearest support zone is at S1 Pivot Point – 0.00000911 USD, coinciding with the baseline area of the down channel.

SHIB/USDT daily chart | Source: TradingViewTechnical signals also reflect the cautious sentiment of the market: the MACD line is converging with the signal line, indicating weakening buying momentum, while the RSI is dropping to around 45, below the average threshold – indicating a neutral trend leaning towards a fall.

To bounce back, SHIB needs to close above the 100-period EMA at 0.00001073 USD, thereby confirming the break of the bearish pattern. If successful, the next resistance zones are at R1 (, 0.00001116 USD ) and R2 (, 0.00001225 USD ) will be important milestones to conquer.

Pepe (PEPE)

After three consecutive days of bounce back, PEPE has turned around to fall 3% on Tuesday, marking the start of a new adjustment phase. As of Wednesday afternoon, this token is trading below the 0.00000700 USD mark, with the nearest support zone located at S1 Pivot Point – 0.00000619 USD.

Daily chart of PEPE/USDT | Source: TradingViewSimilar to other leading meme coins, the MACD indicator has shown a bearish crossover signal, indicating that selling pressure is dominant, while the RSI at 43 reflects weakening buying momentum.

On the contrary, if PEPE can break through the peak of Tuesday at 0.00000738 USD, the upward momentum could be reinforced, opening up opportunities towards the resistance zone R1 Pivot Point – 0.00000788 USD.

Conclusion

The weakening confidence from major investors, the sharp decline in open contract volume, along with a series of negative technical signals, are indicating that “blue chip” meme coins like DOGE, SHIB, and PEPE may be entering a deeper correction phase, amid an increasingly unstable crypto market.

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