Meme Coins Are Broadly Stagnant Ahead of the Fed Meeting

Cryptocurrency prices are broadly stagnating on Tuesday, ahead of the Federal Reserve (Fed) meeting on the decision on interest rates on Wednesday. Leading meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) face sticky overhead pressure, making recovery elusive, while downside risks emerge. However, Turbo (TURBO), a relatively smaller meme token, outperformed major assets, increasing over 12% on the day to trade at $0.006 at the time of writing.

The meme coins sector has generally been down 1.3% over the past 24 hours and has been drawn down by 8.6% in a week. Crypto’s top meme coin, Dogecoin, hovers at $0.16, down over 2% on the day.

Dogecoin snapped out of the uptrend from its April low at $0.13, after encountering resistance at $0.19 on April 26. A subsequent drop under the ascending trendline emphasized the bearish momentum. With DOGE sitting below the 4-hour 50, 100 and 200 Exponential Moving Averages (EMAs), the short-term outlook likely remains largely bearish.

The Relative Strength Index (RSI) sharp drop toward the oversold region amplifies bearish momentum. However, if the RSI recovers, Dogecoin could be more attractive to traders willing to buy the dip.

On the other hand, Shiba Inu’s 4-hour chart showcases a bearish landscape, emphasized by a sloping RSI indicator likely to reach the oversold region in upcoming sessions.

Larger than expected declines may invalidate the potential bull flag pattern and accelerate losses, targeting the short-term support area at $0.000012, $0.000011 and the April 7 low at $0.000010, where buyers might step in to collect liquidity.

The RSI is not offering the bulls much hope as it slides toward oversold territory, confirming the bearish momentum.

This steep decline in RSI highlights the intense selling pressure SHIB is facing, and without a significant catalyst, a recovery seems unlikely in the near term.

However, if the RSI dips below 30 and starts to curl upward, it could signal a potential bounce, something bulls will be watching closely towards the weekend.

Turbo outperforms major meme coins

Smaller meme coin Turbo has outperformed most major meme coins, surpassing 250% gains in a month, from the April 7 low of $0.0013 to exchange hands at $0.0060 at the time of writing.

The meme coin’s bullish outlook appears strong, holding above the 50-day, 100-day and 200-day EMAs. After rejection from overbought levels at 84.66 and dropping into the neutral region, the RSI indicator is back above 70, hinting at a strong bullish momentum.

After hitting a high of $0.010 on April 28, Turbo dropped 40% to tag the 200-day EMA at $0.0057 on May 5. Since then, the meme coin price has bounced, testing the 50-day EMA at $0.0035 and 100-day EMA at $0.0038.

As the RSI indicator approaches the overbought levels again, it may signal a strong resistance area for Turbo, leading to a steeper-than-expected decline towards the 100-day EMA or lower support levels.