Dogecoin and Shiba Inu extended their declines on Tuesday as meme coins sliced through crucial support zones, turning a shaky market structure into a clear bearish breakdown.
Dogecoin (DOGE) dropped about 4%, losing its footing at the psychologically important 0.10 dollar mark. That level had acted as a key line in the sand for bulls; its failure now signals a meaningful technical setback. On higher time frames, the Supertrend indicator sitting near 0.11958 dollars is firmly bearish, reinforcing that sellers currently have the upper hand. The Parabolic SAR, now hovering around 0.10544 dollars, has flipped into a resistance marker, capping any short-lived rebounds.
As DOGE slid toward the lower boundary of its prevailing price channel, selling pressure accelerated. Horizontal support is clustered around 0.08 dollars, but the sharp angle of the recent decline points to intense downward momentum rather than a slow, orderly pullback. If this zone gives way, attention is likely to shift toward the next major demand area closer to 0.07 dollars.
Derivatives data also reflects fading enthusiasm. Open interest in DOGE futures contracted by 1.02% to 962.62 million dollars, suggesting some traders are unwinding positions rather than adding fresh exposure. Options activity was hit even harder, with volume plunging 48.58%, a sign that speculative appetite around short-term price swings has cooled considerably.
On Binance, DOGE’s long/short ratio stands at 2.1756, indicating a heavy tilt toward long positions. That imbalance suggests a large number of traders were betting on a bounce and are now sitting in losing trades. If price continues to grind lower, forced liquidations of those longs could add fuel to the downside. A sustained recovery would require Dogecoin not only to reclaim the 0.10 dollar handle but also to break decisively above the bearish Supertrend region near 0.12 dollars. Without that, the market is more likely to keep probing support at 0.08 and possibly 0.07 dollars.
Shiba Inu (SHIB) is facing similar pressure. The token is currently trading near the lower Bollinger Band around 0.00000552 dollars, a zone typically associated with heavy selling and oversold conditions. The Supertrend at 0.00000753 dollars remains negative, underscoring the strength of the bearish trend, while the upper Bollinger Band near 0.00000837 dollars highlights how far SHIB has fallen from recent ranges.
Attempts at short-term rallies have been capped by a descending trendline that has steadily pushed lower over recent sessions. Former support zones that previously attracted buyers have now flipped into resistance, a textbook sign of a maturing downtrend. Even as price weakens, on-chain activity shows token burns climbing 65.52% over the past 24 hours, with roughly 2.5 million SHIB permanently removed from circulation. However, with an enormous supply of about 585.45 trillion tokens still in circulation, these burns offer only limited long-term support at current volumes.
In the near term, SHIB’s key support sits in the 0.00000550–0.00000600 dollar range. If that area fails to hold, a deeper slide toward 0.00000500 dollars becomes increasingly likely. For any meaningful recovery to gain traction, Shiba Inu must first reclaim the 0.00000700 dollar level and then overcome the bearish Supertrend ceiling above it. Until those levels are retaken, rallies are more likely to be viewed as opportunities to sell rather than signals of a sustained trend reversal.
From a broader market-structure perspective, the break of these support zones in DOGE and SHIB could mark a shift in the meme coin narrative. For much of the past cycles, meme assets thrived on social media hype, rapid inflows of speculative capital and a forgiving macro backdrop. With major technical levels now broken, traders are being forced to reassess whether the latest downturn is just another dip to buy or the start of a longer cooling phase for the meme sector.
Short-term traders are watching volatility closely. The approach to lower Bollinger Bands in SHIB and the sharp intraday swings in DOGE often attract scalpers looking for quick reversals. Yet, when strong downtrends are in force, oversold signals can stay in place for longer than expected. Aggressive entries against the prevailing trend carry higher risk, especially with derivatives data showing many leveraged longs already under pressure.
For medium- and long-term holders, the current environment raises strategic questions. Some may see these levels as an opportunity to average down, banking on the historical resilience of headline meme coins during previous market recoveries. Others may interpret the combination of broken supports, weakening trading activity and a still-massive token supply—particularly in SHIB—as a sign to reduce exposure until technicals begin to stabilize.
Fundamentally, meme coins still rely heavily on sentiment, community enthusiasm and broader crypto market flows rather than revenue-generating use cases. In phases when liquidity tightens and traders gravitate toward larger, more established assets, meme tokens often suffer outsized drawdowns. That dynamic appears to be unfolding again as technical indicators across DOGE and SHIB align to confirm a bearish bias.
At the same time, meme coins have repeatedly surprised skeptics by rebounding sharply when conditions improve. Triggers for such rebounds in the past have included renewed interest from high-profile figures, sudden spikes in trading volumes, exchange listings or broader crypto market rallies that lift risk appetite across the board. However, relying solely on such catalysts without considering risk management leaves traders exposed to prolonged drawdowns.
Risk-conscious participants are likely to focus on clear invalidation points. For DOGE, that means watching the 0.08–0.07 dollar area as a last major support cluster, and using a confirmed break above 0.10–0.12 dollars as a signal that buyers are regaining control. For SHIB, the equivalent markers are the 0.00000550–0.00000500 dollar support band on the downside and the 0.00000700 dollar level plus the Supertrend break on the upside.
Portfolio allocators may also rethink position sizing for meme assets in light of recent price action. Instead of treating DOGE and SHIB as core holdings, some may reclassify them as high-volatility satellite positions, limiting their share of total exposure. This approach can help capture potential upside if sentiment flips positive again, while containing damage during steep corrections like the current one.
Ultimately, the recent slide in Dogecoin and Shiba Inu underscores the importance of blending technical analysis with prudent risk controls in the meme coin space. With key support levels broken and indicators confirming a bearish phase, the burden of proof now lies with the bulls. Until crucial resistance zones are reclaimed and trading activity meaningfully revives, the path of least resistance for both DOGE and SHIB remains tilted to the downside.