Meme market rapidly declines: Shiba Inu breaks below key support, can emerging AI projects turn the tide?

Meme Coin Ecosystem Faces Difficulties

Since December, the overall meme coin market has been underperforming. SHIB has fallen by 8%, and PEPE charts show a bearish trend, reflecting a deeper issue—the meme coin market appears to be entering a correction cycle.

According to on-chain data analysis by CryptoQuant founder Ki Young Ju, the meme coin market is experiencing its worst period since December 2023. Driven by the Solana craze at the time, the sector experienced a frenzy of gains, but that momentum has faded. Whether in the Solana ecosystem or other blockchains, trading volumes for meme coins remain weak. Dogecoin ETF interest is lackluster, and other meme coins like PEPE continue to be sold off.

However, MoonPay CEO Keith A. Grossman believes that meme coins are not dead; they are simply entering a typical correction phase after nearly two years of growth. In the future, these assets may return in a new form, with a greater focus on the “attention economy.”

Shiba Inu Technical Weaknesses, Support Break Triggers Downside Risk

Shiba Inu(SHIB) is facing one of its most severe challenges. This meme coin broke below its key annual support level of $0.000010 in December—a price zone that was once a buy area for many traders. On December 15, SHIB even hit a low of $0.000008.

Technical analysis shows that over the past month, Shiba Inu repeatedly faced resistance near $0.0000090 to $0.0000092, with multiple rejection wicks indicating weakening upward momentum. As a series of lower highs form, the price structure has shifted to a bearish trend. A mid-term sell-off has pushed the price below the support at $0.0000085, which has now turned from a demand zone into a short-term resistance.

Currently, SHIB hovers between $0.0000078 and $0.0000080, with buyers attempting to stabilize the price here, but subsequent action remains limited. From a technical perspective, Shiba Inu remains vulnerable and needs a rebound above $0.0000085 to rebuild a neutral zone. If it fails to hold this support, the price could further decline toward the mid-$0.0000070s.

Despite the bleak outlook, the community remains hopeful. SHIB is expected to gain ETF support in 2026, Shibarium trading volume has surpassed 1 billion transactions, and on-chain data shows large whales are increasing their holdings. These factors could help reverse the downward trend.

PEPE Head and Shoulders Pattern Emerges, Downside Potential Opens

PEPE formed a head and shoulders pattern several months ago, a classic reversal signal that is now gradually confirmed. After the weekly close broke below the neckline support, this support zone turned into resistance, marking the completion of a structural breakout.

According to the latest market data, PEPE has fallen 3.94% in 24 hours and 14.49% over 7 days. Although the 30-day gain is 32.15%, short-term downward pressure is evident. Technically, PEPE has formed an almost perfect Fibonacci extension, with the current price at $0.0000041. If it cannot recover to previous support levels (now resistance), the price may continue to decline, potentially reaching early listing lows.

Where Is the Market Turning Point? DeepSnitch AI’s New Opportunities

While the meme coin market is in trouble, projects integrating cryptocurrency and artificial intelligence, like DeepSnitch AI, are defying the trend. The platform has raised $1 million, launched a bounty program, and successfully stimulated a price rebound to the $1 million level.

Unlike many projects that promise but never deliver, DeepSnitch AI has actually launched network and multiple agent tools, with users testing and verifying the technology’s authenticity. The platform’s AI tools provide real-time on-chain data, market signals, and trading intelligence to help traders navigate volatility.

In an uncertain market, having accurate information and data is crucial. DSNT has demonstrated its ability to deliver practical products, contrasting sharply with projects that only have roadmaps but no real progress. If meme coins can achieve 100x gains, emerging projects with real utility and innovative value are even more worth looking forward to.

Investment Advice and Market Outlook

The current crypto market is unpredictable; major moves could happen next week or may take months to materialize. In such an environment, the most cautious strategy is small-scale dollar-cost averaging to avoid over-concentration of risk.

The outlook for Shiba Inu and the meme coin market is temporarily hindered, and caution is advised in the short term. However, the expansion of the SHIB ecosystem and ETF expectations offer hope for long-term investors. Meanwhile, emerging projects like DeepSnitch AI provide alternative opportunities for investors seeking new gains—focusing on projects with real products and innovative technology rather than mere hype.

Market volatility always presents opportunities; the key is to distinguish genuine value from short-term noise.