Meme cryptocurrencies recorded good returns on Monday, with Shiba Inu (SHIB) and Pepe (PEPE) in the lead. The surge comes as traders position themselves ahead of the Federal Reserve's anticipated interest rate decision on September 17.
According to market information, there is an increasing institutional attraction to meme tokens via derivatives markets. Open Interest in Dogecoin (DOGE) was up 12.3% while SHIB and PEPE were up 4% and 3% respectively. Trading volumes in these assets have increased by double-digit percentages, showing increased participation in the market.
Meme coins open interests. Source: CoinGlass
The long-to-short ratio for major meme coins remained above 1.0 over the past 24 hours. This metric suggests traders maintain a bullish outlook despite recent market volatility. Derivatives positioning often serves as an early indicator of broader market sentiment shifts.
Technical Patterns Signal Continued Upside
At the time of writing, Shiba Inu is trading at $0.00001292, showing an increase of 4.48% over the past 24 hours.
Shiba Inu has broken more than a falling triangle on the four-hour chart. The token currently trades above its 100-period exponential moving average at $0.00001244, marking a potential trend reversal.
The second resistance level is the 200-period EMA around the level of $0.00001295, which coincides with the supertrend indicator line. A resounding break above this mark might send SHIB to the R2 level at 0.00001298. The long-term profits can aim at the R3 level at 0.00001310.
Technical momentum indicators support the bullish narrative. The MACD histogram indicates widening green bars, and the RSI value of 58 leaves room to go ahead until overbought.
SHIB/USDT daily price chart. Source: TradingView
Pepe has similarly demonstrated strength, recovering over 1% during Monday's session. The frog-themed token broke above its resistance trendline and reclaimed the $0.00001001 level, surpassing the supertrend line and 100-period EMA.
The psychological $0.00001000 support level is a foundation for potential gains. Bulls target the 200-period EMA at $0.00001042 as the next objective. Extended recovery could reach the R3 pivot level at $0.00001112.
PEPE/USDT daily price chart. Source: TradingView
Federal Reserve Decision Looms Large
The September 17 Federal Reserve meeting has become a center of interest to cryptocurrency markets. Anticipations of a drop in interest rates have motivated risk-taking within the digital assets, especially in speculative markets such as meme coins.
Any low level of interest rates is favorable to risk assets since it lowers the cost of borrowing and motivates more people to invest in more lucrative options. Positive reactions to preferential monetary policy changes have historically characterised the market of cryptocurrencies.
