Key Takeaways:
Dogecoin (DOGE) fell 4.51 percent to $0.1041 on Monday, testing a key technical support level, while rival Shiba Inu (SHIB) saw a minimal 0.52 percent dip as a spike in its token burn mechanism cushioned it from a broader market selloff.
The divergence comes as SHIB’s burn activity surged 573.99 percent in the last 24 hours, according to data from Shibburn.com, while prediction market Polymarket gives DOGE a 66 percent probability of closing below $0.10 by June 1.
DOGE pulled back to retest the 0.5 Fibonacci retracement level at $0.1037, a zone that has acted as a pivot for weeks. The 50-day exponential moving average is also converging at $0.1038, reinforcing this support cluster. For SHIB, the price held above its key support floor between $0.00000563 and $0.00000588 despite breaking its ascending trendline from March.
The price action highlights a growing divergence in the memecoin space, where tokenomics like SHIB's burn rate can create resilience. A failure for DOGE to hold the $0.1037 level on a daily closing basis could open the door to further declines toward the $0.0981 support area.
The selloff in memecoins occurred within a wider market downturn, as the total cryptocurrency market capitalization fell 1.8 percent to $2.6 trillion. Bitcoin (BTC) dropped to $76,000, wiping out its gains for May after reports that the White House viewed Iran’s latest peace proposal as insufficient, with a national security meeting on the matter scheduled for Tuesday.
In a counter-trend move, tokens for decentralized perpetual exchanges rallied. Hyperliquid’s (HYPE) token gained 4 percent to $45.34, while Lighter’s (LIT) jumped 6.4 percent. The demand is driven by traders using these 24/7 platforms to react to geopolitical headlines outside of traditional market hours, a trend previously seen during earlier phases of the Iran conflict.
This article is for informational purposes only and does not constitute investment advice.
