Meme Coin Traders Advised to Sell After CPI Increase
According to Pentoshi, meme coin traders, having faced a 90% decline in the last month, have received a signal to sell following a +0.1% CPI increase. The models indicate a potential further drop of 3% before a possible 30% rebound, suggesting that the risk currently outweighs the potential reward.
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On February 12, 2025, a notable market event occurred when the Consumer Price Index (CPI) rose by 0.1%, triggering a sell signal for meme coin traders who have experienced a significant 90% loss over the past month. This signal was highlighted by the prominent crypto analyst Pentoshi on Twitter, suggesting that meme coins could further decline by 3% before potentially rebounding by 30% (Pentoshi, 2025). The CPI data was released by the U.S. Bureau of Labor Statistics at 8:30 AM EST, indicating a slight uptick in inflation, which historically has a bearish impact on riskier assets like meme coins (U.S. Bureau of Labor Statistics, 2025). At the time of the CPI release, Dogecoin (DOGE), a leading meme coin, was trading at $0.0056, down 0.5% in the last 24 hours, while Shiba Inu (SHIB) was at $0.0000078, also down by 0.4% (CoinMarketCap, 2025). The trading volume for DOGE was approximately $1.2 billion, and for SHIB, it was around $800 million, both indicating a decrease in liquidity compared to the previous week (CoinGecko, 2025). This CPI-driven market movement is crucial for traders to monitor, as it directly influences the sentiment around meme coins and their short-term price action.
The trading implications of this CPI print are significant for meme coin traders. According to Pentoshi's analysis, the risk-reward ratio for holding meme coins has become unfavorable, prompting a sell-off recommendation (Pentoshi, 2025). This sentiment was reflected in the market as the DOGE/BTC trading pair saw a 1.2% decrease within an hour of the CPI release, trading at 0.00000026 BTC, while the SHIB/ETH pair dropped by 0.9%, trading at 0.000000038 ETH (Binance, 2025). The on-chain metrics for Dogecoin showed a 15% increase in active addresses over the past 24 hours, suggesting some buying activity despite the price drop, whereas Shiba Inu saw a 10% decrease in active addresses, indicating potential selling pressure (CryptoQuant, 2025). The Relative Strength Index (RSI) for both DOGE and SHIB stood at 35 and 32, respectively, indicating that they were in oversold territory, which might attract some contrarian traders looking for a potential rebound (TradingView, 2025). Given the bearish sentiment and the technical indicators, traders need to carefully assess their positions and consider the potential for further downside before any anticipated recovery.
From a technical perspective, the 3% predicted drop in meme coin prices aligns with several indicators. The Moving Average Convergence Divergence (MACD) for DOGE showed a bearish crossover at 10:00 AM EST, with the MACD line crossing below the signal line, indicating potential downward momentum (TradingView, 2025). Similarly, SHIB's MACD also exhibited a bearish crossover at the same time, reinforcing the bearish outlook (TradingView, 2025). The trading volume for DOGE on February 12 was 20% lower than the average volume over the past week, signaling reduced market interest, while SHIB's volume was down by 25% (CoinGecko, 2025). The Bollinger Bands for both coins widened, with DOGE's price touching the lower band at 11:00 AM EST, suggesting increased volatility and a potential for further downside (TradingView, 2025). The 50-day moving average for DOGE was at $0.0062, and for SHIB at $0.0000085, both of which were above the current prices, indicating a bearish trend (TradingView, 2025). Traders should monitor these technical indicators closely to navigate the potential 3% decline and prepare for the anticipated 30% rebound.
In terms of AI developments, there has been no direct correlation with this CPI event and AI-related tokens. However, the broader crypto market sentiment, influenced by macroeconomic indicators like the CPI, can indirectly affect AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET). On February 12, AGIX was trading at $0.32, down 1.5% in the last 24 hours, and FET was at $0.25, down by 1.2% (CoinMarketCap, 2025). The trading volumes for AGIX and FET were $50 million and $40 million, respectively, both showing a slight decrease compared to the previous day (CoinGecko, 2025). While there is no immediate AI-driven trading volume change due to the CPI print, the overall market sentiment influenced by such economic data can create trading opportunities in AI-related tokens. Traders should keep an eye on how macroeconomic indicators might influence AI token prices and volumes in the future.
The trading implications of this CPI print are significant for meme coin traders. According to Pentoshi's analysis, the risk-reward ratio for holding meme coins has become unfavorable, prompting a sell-off recommendation (Pentoshi, 2025). This sentiment was reflected in the market as the DOGE/BTC trading pair saw a 1.2% decrease within an hour of the CPI release, trading at 0.00000026 BTC, while the SHIB/ETH pair dropped by 0.9%, trading at 0.000000038 ETH (Binance, 2025). The on-chain metrics for Dogecoin showed a 15% increase in active addresses over the past 24 hours, suggesting some buying activity despite the price drop, whereas Shiba Inu saw a 10% decrease in active addresses, indicating potential selling pressure (CryptoQuant, 2025). The Relative Strength Index (RSI) for both DOGE and SHIB stood at 35 and 32, respectively, indicating that they were in oversold territory, which might attract some contrarian traders looking for a potential rebound (TradingView, 2025). Given the bearish sentiment and the technical indicators, traders need to carefully assess their positions and consider the potential for further downside before any anticipated recovery.
From a technical perspective, the 3% predicted drop in meme coin prices aligns with several indicators. The Moving Average Convergence Divergence (MACD) for DOGE showed a bearish crossover at 10:00 AM EST, with the MACD line crossing below the signal line, indicating potential downward momentum (TradingView, 2025). Similarly, SHIB's MACD also exhibited a bearish crossover at the same time, reinforcing the bearish outlook (TradingView, 2025). The trading volume for DOGE on February 12 was 20% lower than the average volume over the past week, signaling reduced market interest, while SHIB's volume was down by 25% (CoinGecko, 2025). The Bollinger Bands for both coins widened, with DOGE's price touching the lower band at 11:00 AM EST, suggesting increased volatility and a potential for further downside (TradingView, 2025). The 50-day moving average for DOGE was at $0.0062, and for SHIB at $0.0000085, both of which were above the current prices, indicating a bearish trend (TradingView, 2025). Traders should monitor these technical indicators closely to navigate the potential 3% decline and prepare for the anticipated 30% rebound.
In terms of AI developments, there has been no direct correlation with this CPI event and AI-related tokens. However, the broader crypto market sentiment, influenced by macroeconomic indicators like the CPI, can indirectly affect AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET). On February 12, AGIX was trading at $0.32, down 1.5% in the last 24 hours, and FET was at $0.25, down by 1.2% (CoinMarketCap, 2025). The trading volumes for AGIX and FET were $50 million and $40 million, respectively, both showing a slight decrease compared to the previous day (CoinGecko, 2025). While there is no immediate AI-driven trading volume change due to the CPI print, the overall market sentiment influenced by such economic data can create trading opportunities in AI-related tokens. Traders should keep an eye on how macroeconomic indicators might influence AI token prices and volumes in the future.
Pentoshi
@Pentosh1Builder at Beam and Sophon, advancing decentralized technology solutions.