Examining the Next Steps for Dogecoin SHIB and PEPE after Cryptocurrency Settlement

CoinDesk reports:
After Bitcoin fell below $60,000, the market plunged into panic. Recently, the Memecoin market has fallen out of favor, but one candidate seems to have piqued investors’ interest.
Over the past 36 hours, Bitcoin (BTC) has dropped 9% from $588,000 to $555,000, before rebounding 6% to $568,000 at press time. This volatility has resulted in significant crypto liquidations, causing further pain for long positions.
The decline in Bitcoin prices stems from several factors. One factor is news of the German government selling BTC. Another is Mt. Gox moving $2.7 billion worth of BTC to a new address.
Given the scale of these fluctuations, crypto liquidations may ease in the coming days as the market needs time to accumulate liquidity before withdrawals can be made.
The Memecoin sector has not been immune to these developments. Despite being among the top performers in late May, it has turned bearish in recent weeks.
The bloodbath temporarily halted
According to Coinglass data, between July 4th and 5th, a total of $750.55 million in long positions and $198.66 million in short positions were liquidated. Here, liquidation refers to the forced closure of traders’ positions on the futures market when their account margins are no longer sufficient to maintain their open positions.
In turn, as they close, they introduce market orders in the opposite direction to their open positions before liquidation. Thus, a rapid succession of forced liquidations due to plummeting prices led to a cascading effect of liquidations.
Large-scale crypto liquidations conducted in this manner may benefit the market. They can eliminate over-leveraged traders, pave the way for spot-driven price fluctuations, and reduce speculative impacts.
By market capitalization, the third-largest Memecoin Pepe may benefit from the recent selling wave.
Major Memecoins are struggling, with one exception
AMBCrypto found that Pepe’s liquidation heatmap shows significant levels wiped out in the $0.000077 to $0.000095 range. This situation has been intensifying since mid-May. In the north, the $0.000014 region may be the next magnetic area for altcoin prices.
AMBCrypto’s analysis of Dogecoin [DOGE] and Shiba Inu [SHIB] indicates a set of liquidation levels further south for these Memecoins.
Therefore, the recovery of DOGE or SHIB may require more time and deeper corrections. Although Shiba Inu has shown optimism over longer timeframes, Pepe may recover the quickest from recent losses.
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PEPE bulls must defend the $0.0000796 to $0.0000089 range to maintain bullish hopes over higher timeframes. The recent crypto liquidations sparked market panic, but there is hope that July could see a price recovery.