Memecoins are sitting at a pit stop. Is the market due for a reversal?
Last week, as memecoins were trending to the upside, the market ran into major resistance. In this week’s technical analysis, let’s check the price charts of DOGE, SHIB, BABYDOGE, CATE, FLOKI and SAITAMA in the 4-hour time frame to analyze their current performance.
Last week, DOGE tried to extend its move to the upside. After successfully closing the price above the area of interest (marked in the chart), the coin found resistance at the $0.10 level. Since then, DOGE has returned to the area of interest.
The DOGE bulls need to stay above $0.09, as losing this level would shift the market structure in favor of the bears. A close and hold below the $0.09 level will put the coin in a consolidation pattern.
Also Read: How to Use Moving Averages in Trading?
This week, SHIB broke out of the resistance level. After being stuck in a consolidation pattern since the middle of January, the token has started to pick up momentum.
SHIB has managed to close and hold above the area of interest (shown in the chart). At the time of writing, there are no major signs of a reversal. If the price forms a higher low, expect to see further movement towards 1,600.
Last week, BABYDOGE was the memecoin pack leader. This week remains the same and the token continues to print higher highs and higher lows.
At the time of writing, BABYDOGE is in a minor consolidation pattern, setting up for its next move. The bears need to push the price up and close it below the 2.7 support zone to shift the market structure. However, there are no major signs of a reversal of the trend.
Also Read: How to Find Support and Resistance Zones?
This week, CATE is on the move to break out of the resistance. At the time of writing, the token is looking to flip resistance into support.
The bears are looking to close and hold the price below the September low to take control. However, the bulls are looking to hold this level as support.
Also Read: How To Use TradingView?
Last week, FLOKI was approaching a major resistance level. Since then, the token broke all the resistance levels in its way and made its way to the 3,400 level.
At the time of writing, FLOKI has flipped a minor resistance level into support. The bears have to put in some effort to shift the market structure.
This week, SAITAMA continues its consolidation pattern. The last couple of memecoins that were stuck in a consolidation pattern ended up in a breakout (not financial advice!).This level will continue to be a battleground between the bears and bulls. A close and hold below the nearest support or resistance level will determine the direction.
Also Read: How to Invest in Crypto in Uncertain Times?
Here is a summary of the above:
- DOGE is starting to cool off.
- SHIB continues to print higher highs and higher lows.
- BABYDOGE continues to lead the pack!
- CATE has made a break to the upside.
- FLOKI is looking to extend its move.
- SAITAMA continues to sit 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.
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.