Memecoins continue to create lower lows. How long will this continue?
Last week, memecoins continued to sell off. In this week’s technical analysis, we will analyze the price charts of DOGE, SHIB, BABYDOGE, CATE, FLOKI and SAITAMA in the 4-hour time frame to monitor their current conditions.
This week, DOGE printed a lower high as it continued to sell off. At the time of writing, the coin is sitting at a minor support level.It is important to note this is a critical level for the bulls. Losing this support will assist the price towards the November 2022 low. The bears have shifted the market structure since the rejection of the area of interest shown above.
Also Read: How to Use Market Structure In Trading?
Last week, SHIB was looking to extend its rally to the upside. The token got rejected at the 1,380 level and printed a lower high.
At the time of writing, SHIB is sitting at a major support level. Losing it would be devastating for the bulls and assist the bears with a push towards the September low. This level will be pivotal, therefore, expect some consolidation first.
This week, BABYDOGE continued to sell off towards its major support level at 2.7. The bulls need to step in to prevent further lower lows.At the time of writing, there is no confirmation of support at this level. A close and hold above the most recent lower high is a sign of a reversal being on the way. Losing this level will assist the bears with a push towards the 2.0 zone.
Also Read: How to Use Moving Averages in Trading?
Last week, CATE attempted to break above the September low. It got rejected, which triggered a sell-off. CATE is sitting at the area of interest - a pivotal level for the token.
At the time of writing, the direction is not clear. The bulls need to close and hold above the September low for a breakout. However, the bears can shift the market structure with a close below the area of interest.
Also Read: Breakout vs Fakeout (False Breakout)
This week, FLOKI confirmed support with a bounce off the 3,700 level. Later, the token entered a consolidation pattern, and it is now trying to break out.Taking a step back, FLOKI is respecting the ascending channel pattern. The bulls need to close and hold above 5,500 to extend this rally.
Last week, SAITAMA was rejected by its range resistance mentioned in the last week’s analysis.
Since then, the token has returned to its range support level. This is a critical level, as losing this support will assist the bears with a push towards the August low.
Here is a summary of the above:
- DOGE has started to break down.
- SHIB is looking to establish support.
- BABYDOGE recently printed a lower low.
- CATE is sitting at a pivotal level.
- FLOKI is setting up for a breakout.
- SAITAMA is sitting at its range support.
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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