Meme Coins Face Heavy Selling as Market Braces for Fed Decision

Meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are under renewed pressure on Friday as the broader crypto market absorbs another sharp wave of sell-offs. Market sentiment has tilted decisively toward fear, driven by a steep drop in expectations that the Federal Reserve will cut interest rates at its December FOMC meeting.

The combination of macroeconomic uncertainty, reduced rate-cut odds, and deteriorating derivatives metrics is weighing heavily on trader confidence and signaling that meme assets may face deeper losses.

Fading Risk Appetite Hits Meme Tokens

The three largest meme cryptocurrencies by market capitalization have declined between 5% and 8% over the past 24 hours. The downturn follows a shift in expectations for monetary policy, as the likelihood of a December rate cut has fallen to around 52%, down from nearly 63% the previous day.

The decline stems largely from incomplete employment data caused by the government shutdown, leaving policymakers without visibility into key labor indicators. National Economic Council Director Kevin Hassett noted that October’s employment report will be missing its unemployment component, adding uncertainty to the Fed’s decision-making process.

With interest rates still anchored at 3.75%–4.0%, investors using borrowed capital appear increasingly hesitant to allocate funds toward high-risk segments like meme coins.

Market activity reflects this risk-off mood. CoinGlass reports that futures open interest in SHIB and PEPE has slid by 7% and 3%, dropping to $67.71 million and $190.84 million, respectively. Dogecoin, however, maintains stronger momentum thanks to growing anticipation surrounding a potential Bitwise DOGE ETF, now awaiting SEC approval. DOGE futures open interest has risen nearly 2% to $1.47 billion.

Dogecoin Extends Its Correction

Dogecoin is trading below $0.17 after a 4% decline on Thursday. The chart structure shows a clean breakout–retest–continuation pattern from the $0.18 resistance region, increasing the probability of a move toward the April 7 low at $0.12986.

A break beneath that level could open the door to a test of the $0.10 psychological support, with bears eyeing the October 10 low near $0.095.

Technical indicators tell a mixed story. The MACD is moving closer to a bearish crossover, while the RSI at 38 shows a bullish divergence as price revisits early-November levels. DOGE continues to trade below the 50-, 100-, and 200-day EMAs, reinforcing a prevailing downtrend. A recovery above $0.15 could reintroduce buying pressure, especially if ETF catalysts strengthen, potentially lifting DOGE back toward $0.18.

Shiba Inu Nears Key Support Zone

Shiba Inu continues its decline below the $0.00001000 psychological threshold, marking its fourth straight daily loss. SHIB is approaching the S1 Pivot Point at $0.00000879—an area that acted as a rebound zone last week.

Failure to hold this level could deepen the drop toward $0.00000759. The technical picture mirrors Dogecoin’s: the RSI at 39 signals bullish divergence, while the MACD edges closer to a bearish crossover. A rebound could push SHIB back toward resistance near $0.00001000.

Pepe Risks a Steeper Breakdown

Pepe has shed about 1% on Friday, adding to a 5% decline the previous day. Similar to DOGE, PEPE is exhibiting a retest-and-drop structure from the $0.00000650 zone. The token currently sits above support at $0.00000528, but a daily close below that threshold could accelerate a move toward $0.00000449.

The RSI at 33 flirts with oversold conditions, showing bullish divergence, while the MACD is one step away from confirming a bearish crossover. Should momentum shift upward, PEPE will face significant supply pressure near $0.00000650.