Crypto Market Crash Deepens As Dogecoin Shiba Inu And Pepe Plunge
The cryptocurrency market experienced a major sell-off on November 4, as traders retreated to safety amid renewed volatility. Bitcoin fell below the key $106,000 support level, dragging altcoins lower. The combined market capitalization of all cryptocurrencies dropped by more than 4% in 24 hours to around $3.6 trillion.
Meme coins bore the brunt of the crash. Dogecoin plunged 45% from its September high to $0.1667, while Shiba Inu dropped to $0.0000091. Pepe Coin broke its crucial support at $0.0000059, reaching its weakest level since mid-October.
Fear And Liquidations Dominate The Market
Investor sentiment remains fragile as liquidations surge across exchanges. Data from CoinGlass shows that more than $1.29 billion worth of leveraged positions were wiped out in the last 24 hours—a staggering 686% increase from the previous day.
Over 334,000 traders were liquidated, including one investor who lost over $33 million on a single Bitcoin trade. Ethereum accounted for roughly $329 million of total liquidations, while Bitcoin trades totaled $324 million. Dogecoin positions worth $66 million were also closed, underscoring widespread deleveraging across the market.
Meme Coins Lead The Decline
Dogecoin, Shiba Inu, and Pepe Coin were among the hardest-hit assets. Analysts point to low liquidity, limited utility, and profit-taking as the main factors driving the sell-off. Dogecoin’s new REX-Osprey ETF (DOJE) has failed to attract major inflows, dampening investor confidence.
Shiba Inu’s ecosystem faces its own challenges. A low token burn rate, combined with increased whale selling and issues on its Shibarium Layer-2 network, has pressured prices further. Pepe Coin, meanwhile, has formed a bearish head-and-shoulders pattern, a signal often associated with deeper corrections.
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Fear Index Reflects Widespread Caution
The Crypto Fear and Greed Index has fallen to 35, placing the market firmly in the “fear” zone. This indicates that traders remain hesitant to re-enter positions following weeks of volatility.
Market analysts suggest that sentiment may remain subdued until Bitcoin stabilizes above $108,000 or new catalysts emerge. Without a clear reversal, continued caution could extend the downtrend into the coming week.
Open Interest Drops As Leverage Unwinds
Futures data shows that open interest across major cryptocurrencies fell by 4.25% in the past 24 hours, signaling a widespread reduction in leverage. Traders appear to be closing positions rather than speculating on short-term rebounds.
According to analysts, this decline in open interest reflects “capitulation behavior,” a stage where market participants exit en masse before potential recovery phases. If historical patterns hold, a stabilization period could follow once selling pressure eases.
Broader Implications For The Crypto Market
The ongoing correction highlights the fragility of risk appetite across digital assets. While equities have shown resilience, the crypto sector remains sensitive to liquidity shifts and investor sentiment. Analysts say that regulatory uncertainty and global economic headwinds have contributed to the risk-off tone.
Despite the downturn, institutional investors continue to monitor long-term opportunities. Previous market cycles suggest that sharp drawdowns often precede accumulation phases by major players. A recovery could begin once Bitcoin and Ethereum regain key support levels.
Technical Outlook For Meme Coins
Technical charts show that Dogecoin faces immediate resistance at $0.19, while a failure to hold $0.15 could invite deeper losses. Shiba Inu’s next support sits at $0.0000085, followed by $0.0000079 if selling accelerates. Pepe Coin may test $0.0000052 in the near term before any meaningful rebound.
Analysts recommend caution, advising traders to wait for signs of consolidation before re-entering the market. In the short term, liquidity remains thin and volatility high across most meme tokens.
Outlook: Opportunity After The Storm
Although the crypto crash has erased billions in value, some experts view it as a healthy reset. The liquidation of over-leveraged positions could help stabilize prices once panic selling subsides.
For now, traders remain watchful as Bitcoin attempts to reclaim lost ground. A sustained recovery in the leading cryptocurrency could trigger renewed optimism across altcoins, including Dogecoin, Shiba Inu, and Pepe. Until then, the market remains firmly in correction mode.
