Memecoins continue to hold the August low as support. Will the downtrend be over soon?
This week, memecoins
left the previous pattern and printed higher highs and higher lows.
In this week's technical analysis
, we take a deep look into DOGE, SHIB, BABYDOGE, CATE, FLOKI and SAITAMA in the 4-hour time frame using the logarithmic chart.
Last week, DOGE was approaching the channel midline (resistance). August low continues to hold as support. A close below it would lead DOGE to a lower low.
At the time of writing, the trend remains in favor of bears
. The bulls need to break above the channel midline.
The area of interest remains at a critical level. Successfully reclaiming it will shift the trend in favor of bulls
. The DOGE bulls need to close and hold above $0.065.
A rejection from $0.065 will trigger a sell-off towards $0.06.
Also Read: How to Use Stop Loss and Take Profit in Trading?
This week, SHIB printed a higher high followed by a higher low. Since then, the market is making an attempt to continue to the upside.
Taking a closer look, this support zone looks strong. Zooming out, it is clear that the level acted as a critical resistance previously. If the bulls can get above the area of interest, there may be a nice push towards 1,410.
If there is a 4-hour close above 1,275, expect to see a retest of 1,410. However, rejection from 1,275 will assist the push towards 1,100.
Last week, BABYDOGE was sitting at its support level. It is in the consolidation stage right now, ranging between the area of interest and minor support.
Successfully closing above or below either of these levels will determine the market's next direction. This will be a battleground between the bears and bulls.
Also Read: How to Use Market Structure in Trading?
Last week, CATE was approaching the area of interest. It failed to close above and hold successfully.
Zooming out, the bull trend is starting to lose momentum. CATE has been creating lower lowers and lower highs. The token is approaching a major support level.
The market needs to successfully reclaim 9,500 to see some relief to the upside
FLOKI has failed to reclaim the June high. This has caused the market to print lower highs and lower lows.
This week, FLOKI is approaching the August low. It is a critical level for the bulls. A close below it will break the structure.
If there is a 4-hour close above 1,005, expect to see a push towards the June high.
SAITAMA has failed to successfully close above the area of interest. Since then, the market has created lower highs and lower lows.
Taking a close look at the most recent price action, SAITAMA is showing signs of weakness. The bulls need to get back above the August low.
If there is a 4-hour close above the August low, expect to see some relief to the upside.
Also Read: How to Use Moving Averages in Trading?
If you are one of those who skipped to the bottom to save some time, here is a summary of the above:
● DOGE is starting to look weak.
● SHIB is looking to confirm a higher low.
● BABYDOGE is in consolidation.
● CATE's bull trend is losing momentum.
● FLOKI is approaching major support.
● SAITAMA bulls need to make some efforts.
Something to look out for this week is to see if the August low will hold as support. Losing this level will lead to a sell-off.
Remember that this is all based on the subjective views of the writer. As always do your own research
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.