Memecoins recently printed new local tops. Is there more to come? Read more to find out!
Last week, memecoins printed a new higher high on the charts. Later, they fell back and confirmed support.
Memecoins are currently aiming to keep the momentum going. In this week's technical analysis, we will analyze DOGE, SHIB, BABYDOGE, CATE, FLOKI and SAITAMA in the 4-hour time frame using the logarithmic chart.
DOGE/USDT
Last week, DOGE was in search of support. It failed to hold the $0.0749 level and the area of interest. Since then, the token has found support and is now looking to reclaim the area of interest.
The overall trend remains in favor of the bears with no clear signs of a reversal. The price action is now approaching the area of interest. Rejection from this level will not be a good sign for the bulls. The DOGE bulls need to go above $0.71 to establish confidence in the market.
The month of August has mostly been a range-bound month. DOGE has now re-entered its range. Is the market going to continue to respect it?
The rally will continue if the 4-hour candle closes above 0.07100. However, a rejection from the area of interest may assist the price towards 0.06200.
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SHIB/USDT
Last week, SHIB was trying to confirm support. After confirming it, it is moving above the area of interest. Seems like bulls are waking up.
Zooming in at the most recent price action, there are signs of support at 1,300. The bulls need to continue holding above this level. Losing it could shift market sentiment in favor of the bears.
If the 4-hour candle closes above 1,350, expect to see a retest of 1,450. However, a close below 1,300 will trigger a sell-off towards 1,150.
BABYDOGE/USDT
BABYDOGE recently printed a lower high and a lower low. The price action has now returned to its previous breakout zone.
At the time of writing, BABYDOGE is looking to confirm a higher low. Bulls need to hold this level or it will get ugly.
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CATE/USDT
Last week, CATE was respecting its bullish channel. Since then, it has broken down the trendline, and it is looking for support now.
Taking a step back, momentum remains in favor of the bulls with no major signs of a reversal. The chart shows signs of support at this level.
If there is a 4-hour close above 13,000 expect to see a push towards 14,000. However, a rejection from this level will trigger a sell-off toward 10,000.
FLOKI/USDT
FLOKI is in the middle of confirming support. Last week, it was in a parallel channel and lost the structure.
FLOKI is aiming to reclaim the June high as support. At the time of writing, there is no confirmation if this level will hold. If bulls can successfully reclaim this level, the market may uptrend again.
Also Read: How to use market structure in trading
SAITAMA/USDT
Last week, SAITAMA was testing the area of interest as support. Since then, it has broken the level and is testing the June low.
Shifting towards the most recent price action, the token has created a lower low. Bulls have to make some efforts. Staying above the June low is a step in the right direction.
Summary
If you are one of those who skipped to the bottom to save some time, here is a summary of the above:
● DOGE is back in its range.
● SHIB is retesting its previous breakout zone.
● BABYDOGE is looking to confirm a higher low.
● CATE is stuck in consolidation.
● FLOKI is looking to confirm support.
● SAITAMA has lost its structure.
Something to look out for this week is if memecoins can successfully confirm support.
Remember that this is all based on the subjective views of the writer. As always do your own research.
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