Massive corrections have unfolded in the digital asset market over the past few hours. Shiba Inu (SHIB), Dogecoin (DOGE), and Pepe (PEPE) have all registered significant falls, indicating a collective collapse.
PEPE, the most memeable memecoin which registered a whopping 1000x returns over the past few days, has been handed a bit of reality. The asset has dropped by a massive 48% over the past 3 hours, after peaking beforehand. The current market continues to bleed and for the ‘vaporware’ project, the downtrend might continue to pile on, and as any investors flocking in, will be flocking out just as quickly.
Dogecoin (DOGE), the original memecoin, has fallen 5.8% in the hourly charts, and by 6.2% in the last 24 hours. According to CoinGlass, $5.93 million worth of DOGE was liquidated in 4 hours. DOGE could find support at around $0.08104, with resistance at $0.09421. THe current fall is the most significant drop for Dogecoin (DOGE) since April 6.
Shiba Inu (SHIB), on the other hand, has fallen 4.5% in the hourly charts, and by 5.1% in the last 24 hours. As per CoinGlass, SHIB has witnessed $705.5k worth of liquidations in the last 4 hours. SHIB could find support around $0.00001061, with resistance at $0.00001147.
Although Shiba Inu (SHIB) and Dogecoin (DOGE) are the two most popular memecoins, Pepe (PEPE) stole the spotlight when its price skyrocketed. However, the fresh new memecoin was not spared the wrath of liquidations.
Why are Dogecoin, Shiba Inu, Pepe, and other cryptos falling?
There is no clear reason why the market has undergone corrections. According to CoinGlass, crypto market liquidations reached $175 million at press time. The vast majority of the liquidations were “longs,” therefore it might be a typical illustration of a long squeeze. Bitcoin (BTC), the original crypto, has so far enjoyed healthy growth this year. BTC has made gains of nearly 80% since January. However, the asset witnessed $30.48 million worth of liquidations in the last 4 hours.
It is also possible that investors are spooked about the financial climate. Yesterday, the US Dollar slipped after China revealed a more than anticipated growth in its GDP for Q1 2022.