Memecoins Struggle to Attract New Buyers Despite a Surge in OI

Even though the overall crypto market is doing well, meme coins are having a hard time attracting enough buyers.

Despite the broader crypto market showing strength, memecoins are struggling to attract enough buyers, leading to stronger-than-usual selling pressure at key price levels on the way down.

Interestingly, both Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) have formed multiple higher lows, which might suggest that a short-term price drop could be due.

What Happened: According to data from CoinGlass, both Dogecoin and Shiba Inu saw a surge in futures open interest despite the price struggling to sustain the rally.

Dogecoin’s futures open interest went up by 78% in the past seven days. This increase happened even though Bitcoin (CRYPTO: BTC) price saw a large correction from its recent peak, leading to a decline in the total value of open cryptocurrency futures positions.

From $1.7 billion on July 10, the total value of open Dogecoin futures positions increased to $3.03 billion by July 17.

On the other hand, Shiba Inu’s open interest realized a surge of over 61% over the past week. The volume of SHIB futures positions rose from $152 million to over $246 million during this period.

Despite the sharp rise in open interest for both SHIB and DOGE, this didn’t lead to a strong price recovery on the charts.

Dogecoin Price Action: Dogecoin price is forming multiple higher highs around the $0.25 level. However, sellers are still in control as the price remains within key support channels.

At the time of writing, DOGE price trades at $0.2336, down 2.1% in the last 24 hours. The rally is now hitting strong resistance around $0.25, which might lead to a pullback toward the $0.21 level.

If the price bounces back strongly from $0.21, it would indicate that traders are now more prepared to buy on dips rather than sell into rallies, increasing the chances of a move up to $0.265. A successful breakout above that level might propel the price toward $0.32.

To halt this upward momentum, sellers would need to push the price below the 20-day Exponential Moving Average (EMA), currently at $0.231. Such a move might send DOGE/USDT lower toward $0.2.

Now, the price has started to decrease from $0.26, with the next support levels at $0.22 and $0.21. If the price finds support and bounces from this zone, it would suggest that buyers are stepping in at lower levels.

In that case, the bulls may try to drive the price back up to break through the resistance at $0.25 and continue the rally toward the next resistance at $0.28. A strong move above $0.28 could open the way for a surge toward the $0.32 zone.

Shiba Inu Price Action: SHIB price is facing bearish correction below the $0.000017 level. Buyers are keeping the price above the EMA20 trend line but might soon face selling pressure.

Currently, SHIB price trades at $0.0000158, down 2.2% in the last 24 hours. This rally has pushed the Relative Strength Index (RSI) toward the 51 level, indicating an equal level of strength from both buyers and sellers.

If SHIB manages to stay above the immediate support of $0.00001475, we might see another test of the $0.000017 level. A breakout above this level could send Shiba Inu toward the $0.000019.

However, this bullish outlook could be dashed if the price drops below the $0.00001475. A move below this pivot point might lead to further consolidation of SHIB price around the $0.00001225.