As the cryptocurrency market experiences a significant downturn, altcoins are struggling to maintain their crucial support levels. Particularly, meme coins known for their extreme price swings are showing even larger declines during this crash.
With investors swiftly exiting positions amid growing Fear, Uncertainty, and Doubt (FUD), hopes for a widespread bull market following the Halving event seem distant. Will meme coins weather the storm and aim for a significant price surge? Is this downturn just a necessary adjustment for the market? Let’s delve into the price analysis of top meme coins for a clearer understanding.
DOGE Price Analysis Amidst Downtrend
The recent price action of DOGE indicates a significant downtrend, breaching the critical support zone of $0.145. Within a broader bearish channel, there’s a notable increase in supply, forming a secondary channel that challenges the $0.13 level.
Furthermore, the daily Relative Strength Index (RSI) line has dipped below the oversold zone, signaling heightened supply pressure. This sentiment is reinforced by the negative trend observed in both the Moving Average Convergence Divergence (MACD) and signal lines.
In the event that the meme coin falls below $0.13, sellers are likely to test the declining support trendline at $0.11 or approach the psychological support level of $0.10. However, a bullish reversal has the potential to ignite a positive cycle, aiming for the $0.18 mark.
SHIB Price Analysis Amidst Bearish Trend
Amidst a supply surge affecting many altcoins, the SHIB price trajectory indicates a bearish reversal. Notably, the meme coin has exhibited a breakdown of a symmetrical triangle pattern on the 4-hour chart.
Over the past 24 hours, SHIB has experienced a nearly 10% decline, contributing to a 25% drop over the last 30 days. This breakdown signals a selling opportunity, heightening the likelihood of further decline, potentially pushing the SHIB price below the psychological mark of $0.000020.
However, on the positive side, a retest of the broken trendline could present a chance for buyers to regain control of the trend and initiate a potential comeback.
PEPE Price Analysis Amidst Market Turmoil
In the midst of the ongoing decline in meme coins, the price action of PEPE reveals a bullish breakout from a falling channel, struggling to gain momentum. This breakout rally is now retracing for a retest from the 50% Fibonacci retracement level.
Following the reversal from $0.000007662, the retest places the PEPE price near the 23.60% Fibonacci level, approximately at $0.0000060. With an intraday decline of 4.94% and a 9.37% drop overnight, the frog-themed coin faces significant downward pressure. This downward trend could potentially lead to a breakdown below the $0.0000060 level.
BONK Price Analysis Amidst Market Volatility
Like PEPE, the BONK meme coin experienced a breakout from a bearish channel. Initially, this breakout led to a short-lived uptrend. However, amidst the broader market slowdown, the uptrend reversed.
Now, as the bearish reversal retests the $0.000020 support zone, there’s a strong possibility of a bullish turnaround in the BONK price trend. Despite experiencing a sharp 11% drop overnight, the meme coin has shown resilience and managed to avoid bearish continuation today.
In the event of a bounce back, the uptrend could potentially reach the $0.000035 mark, indicating a positive momentum shift for BONK.
In Summary
Amidst a crash in the market and an increase in the coin supply, meme coins are facing intense downward pressure, indicating a likely continuation of the downtrend throughout the week. Despite this, there’s a glimmer of hope for a slightly positive end to the month, as strong demand at lower price levels may buoy meme coin prices. Therefore, May could potentially turn out to be unexpectedly positive for meme coins, particularly once the market adjusts to recent news involving CZ.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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