Memecoins recently faced a strong resistance. Will the market continue to sell off this week?
Last week, memecoins tried to test the resistance multiple times but failed. In this week’s technical analysis, let’s analyze the price charts of DOGE, SHIB, BABYDOGE, CATE, FLOKI and SAITAMA in the 4-hour time frame to analyze their current conditions.
This week, DOGE printed lower highs and lower lows, after being rejected by the area of interest shown above. The next level of support is at the $0.07 zone.
It is crucial for bulls to confirm support at or above $0.07. Losing this level will shift the market structure in favor of the bears.
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Last week, SHIB was the pack leader, pushing the memecoins toward new local highs. This week, the token got rejected by the resistance and is now trying to confirm support.
SHIB has printed a lower high inside a major resistance level. Let’s see if the area of interest (shown in the image above) proves to be a good support. Losing it may push the price to the September low.
This week, BABYDOGE continued to move up, printing a new monthly high. At the time of writing, the token is in the middle of a correction.
The BABYDOGE bulls have a couple of levels where support can be established. It is important to note that the token has been trending since the beginning of 2023. A correction at this level would not be a surprise for the bulls. If the bears succeed to push the price below the 3.8 zone, expect to see the token continue towards 3.0.
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Last week, CATE was looking to extend its move to the upside. Since then, it has found resistance at the 6,500 level.
At the time of writing, there is no confirmation of support. The next support level visible in the chart is the October low. The bears are trying to stay below the area of interest (marked in the chart). A push towards this level can put CATE in a minor consolidation pattern.
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This week, FLOKI is in the middle of a minor correction after finding resistance at the 3,500 level. At the time of writing, the token is trying to establish support.
The bulls need to close and hold the price above the 2,100 level, as losing this level will print a lower low for the bears. This zone will be a battleground between the bulls and bears.
SAITAMA has been in a consolidation pattern since last week.The range from 2,600 and 3,000 will be a battleground between the bulls and bears. Any breakout/breakdown from the range will determine the next direction.
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Here is a summary of the above:
- DOGE continues to cool off.
- SHIB is looking for support.
- BABYDOGE continues to lead the memecoins.
- CATE is returning to its consolidation pattern.
- FLOKI is looking to establish support.
- SAITAMA remains in a consolidation pattern.
Writer’s Disclaimer: This article is based on my limited knowledge and experience. It has been written for educational purposes. It should not be construed as advice in any shape or form. As always do your own research.
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