Dogecoin, Shiba Inu and Pepe signal bounce back — Is a new uptrend about to start?

Top meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are bouncing back strongly from the support zone established earlier this month, following a $19 billion liquidation shock across the market on October 10th. Current technical signals indicate that selling pressure is gradually easing, while bullish RSI divergences are appearing simultaneously on the daily charts of all three tokens. This trend raises expectations for a significant recovery — potentially becoming a catalyst to kickstart the long-awaited Uptober for the meme coin group.

Retail investor interest remains divided

Apart from Dogecoin, the two coins Shiba Inu and PEPE are still struggling to regain their appeal with retail investors, as strong market volatility continues to dominate cautious sentiment.

According to data from CoinGlass, the open contract (OI) of DOGE has increased by more than 8% in the past 24 hours, reaching 1.81 billion USD — a sign that speculative money is returning. In contrast, the OI of SHIB and PEPE has slightly decreased, falling by 1% and 2%, respectively, to 77.04 million USD and 228.95 million USD during the same period.

Derivatives data of meme coin | Source: CoinGlassThe increase in OI of Dogecoin reflects a higher risk appetite among investors, as the nominal value of open contracts continues to expand. Meanwhile, trading confidence in SHIB and PEPE has yet to catch up with the bounce back of DOGE.

Nevertheless, the total market capitalization of the meme coin group has surged to 55.54 billion USD, compared to 51.02 billion USD recorded on Friday, raising hopes for a widespread bounce back in this segment of “fun” cryptocurrencies.

Market capitalization of the meme coin segment | Source: CoinMarketCap## Dogecoin is preparing for a potential bounce back

As of Monday afternoon, Dogecoin (DOGE) is still holding above the mark of 0.19000 USD, completing two consecutive sessions of gains with a profit of about 5%. This recovery momentum is bringing DOGE closer to the psychological threshold of 0.20000 USD, after bouncing back strongly from the support zone of 0.18527 USD established on October 11.

If the bullish momentum continues and DOGE reclaims the 200-day EMA at 0.22021 USD, the upward trend could extend to the central Pivot level of 0.24818 USD. This development will also help the coin avoid the (death cross) forming between the 50-day EMA and the 200-day EMA.

DOGE/USDT Daily Chart | Source: TradingViewTechnical signals are gradually supporting the bulls as the MACD indicator approaches the signal line, indicating a clear weakening of selling pressure. If the MACD crosses above the signal line, a new bullish trend may be confirmed.

In addition, the daily RSI has bounced back to 40 from a level of 32 after the crash on October 11, creating a bullish divergence – a sign that short-term momentum is returning.

Conversely, if DOGE closes below 0.18527 USD, the bears may regain control and pull the price down deep into the support zone S2 at 0.14610 USD.

Shiba Inu at a critical crossover level

As of the time of writing, Shiba Inu (SHIB) is trading at the psychological level of 0.00001000 USD, recording its third consecutive bounce back. The strong rebound from the support zone of 0.00000974 USD ( established on 11/10) indicates that the movement pattern of SHIB is mirroring a similar trend to Dogecoin (DOGE).

In the short term, the price of SHIB may head towards the Pivot S1 level at 0.00001059 USD, and if the upward momentum is maintained, the next target will be the central Pivot zone around 0.00001271 USD.

Daily SHIB/USDT Chart | Source: TradingViewOn the daily timeframe, technical signals indicate that selling pressure is weakening. The MACD indicator has narrowed its gap with the signal line, opening up the possibility of a golden cross, while the RSI is gradually increasing from the oversold zone and is currently at 38 – a sign that supports the bounce back scenario. The successful testing of the resistance at 0.00000974 USD also increases the reliability of the bullish divergence signal.

However, if SHIB loses this support zone, the adjustment pressure may pull the price back to the Pivot S2 zone around 0.00000935 USD.

Pepe consolidates its bounce back as selling pressure decreases

Pepe (PEPE) is showing recovery signals similar to Dogecoin (DOGE) and Shiba Inu (SHIB), as it bounces back from the support zone S2 at 0.00000645 USD. This meme coin inspired by the frog has increased by 2% during Monday's trading session, marking a three-day consecutive rise.

Currently, PEPE is heading towards the Pivot S1 zone around 0.00000788 USD — a short-term resistance that has repeatedly hindered the bullish momentum last week. If it successfully breaks through this level, the price could extend its upward trend to 0.00000887 USD, an area that previously played a crucial role as a support zone in the descending triangle pattern.

Daily PEPE/USDT Chart | Source: TradingViewThe technical indicators on the daily frame show that selling pressure is clearly weakening, with a bullish divergence signal on the RSI. The RSI is currently at 37 and continues to move towards the neutral zone, while the MACD line is gradually approaching the signal line — a crossover here could confirm the return of the bullish trend.

On the contrary, if PEPE falls below 0.00000645 USD, the risk of a deep decline towards the psychological zone of 0.00000500 USD will increase significantly.

SN_Nour