Memecoins Shiba Inu (SHIB) and PepeCoin (PEPE) have disappointed bulls over the past 24 hours, suggesting a risk-off mood in the broader crypto market.

SHIB experienced significant price volatility, reaching a peak of 0.00001336 before declining to 0.00001297, with notable high-volume support emerging at the 0.00001310 level overnight.

The support was breached soon before press time, penetrating the bullish upward-sloping higher lows pattern, marking a recovery from the May 31 low of 0.00001226.

The breakdown follows an overnight surge in the SHIB burn rate, which increased by nearly 140%, removing 39.49 million tokens from circulation. Furthermore, open interest in SHIB derivatives increased by 2.03% to 11.36 trillion SHIB (approximately $158.65 million), with Gate.io leading with 54.18% of the total open interest.

Key technical insights

PEPE

PEPE's recovery from the May 31 lows gained momentum on Tuesday, but sellers eventually overpowered buyers near the 200-day SMA resistance, pushing the market valuation back to $5.2 billion.

The rejection at the 200-day SMA could invite more selling, potentially yielding a re-test of the 50-day SMA support at $4.64 billion.

That said, the 50-day SMA has recently crossed over the 100-day SMA and is trending upward, hinting at a broader bullish shift in momentum. So, potential dips could be short-lived.