Memecoins are on the move again. Is it a fake out or the beginning of a big move?
Last week, we saw memecoins setting up for a breakout to the upside. Since then, the price broke out of the range and created a new higher high. These tokens are now looking for a confirmation of support.
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 with the logarithmic chart.
DOGE/USDT
Last week, DOGE broke to the upside and formed a higher high. The token is making its way back to its breakout zone to confirm support.
Zooming out, the overall trend remains in control by the bears. Taking a closer look at the most recent price action, you can see DOGE is testing a critical level. At the time of writing, there is no confirmation in the next direction. The DOGE bulls need to hold this level to keep the rally going.
The beginning of August has mostly been a range-bound market. Memecoins have broken out and are now testing pivotal levels. Is this the beginning of a new rally?
If there is a 4-hour close above 0.07740, expect to see this support level hold. However, if there is a 4-hour close below 0.07490, this will assist the market back to the area of interest.
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SHIB/USDT
Last week, SHIB broke out and printed a higher high. It is now trying to confirm support. Bulls are showing their presence here.
Considering the most recent price action, there are some signs of minor support at 1,600. Bulls need to hold above this level to keep sentiment strong.
If there is a 4-hour close above 1,625, expect to see some continuation from the bulls. On the other hand, a 4-hour close below 1550 will trigger a sell-off towards 1,450.
BABYDOGE/USDT
BABYDOGE is looking for a continuation from last week's breakout. After printing a higher high and a higher low, the token is trying to confirm support. The price action is now entering another range-bound environment.
Zooming out, BABYDOGE is in the middle of a big range from 980 to 2,100. At the time of writing, the token is testing the top of this range. The BABYDOGE bulls are here to stay.
If there is a 4-hour close below 1,600, expect to see the higher low be tested for support.
CATE/USDT
CATE recently confirmed a higher low and continued to the upside. The token has been respecting a bullish channel. Losing this structure will put the market in favor of the bears.
If there is a 4-hour close above the area of interest, there will be a push towards 2,100. However, a rejection from this level will assist a trip towards the channel support.
FLOKI/USDT
Last week, FLOKI printed a new monthly high. Since then, it has been respecting its new range. Is FLOKi setting up for another big move?
Previously, the token was rejected by resistance not once but twice at 1,700. At the time of writing, it is looking for support. Holding this structure is critical for bulls.
If there is a 4-hour close above the area of interest, expect to see a retest of the August high. However, a rejection from this level take the price to 1,300.
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SAITAMA/USDT
SAITAMA continues to respect its range. This week, it broke out of its minor downtrend and is now trying to confirm support. At the time of writing, there are no major signs of the token losing this structure.
SAITAMA fell back into the area of interest. The last time the price action was at this level, there was a nice bounce to the upside. A successful bounce of this level puts the market structure in favor of the bulls.
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 on the move to the upside.
● SHIB is showing strong signs of continuation.
● BABYDOGE bulls continue to hold the structure.
● CATE is respecting its bullish channel.
● FLOKI was at resistance.
● SAITAMA is looking to confirm support.
Something to look out 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.
Not sure whether to invest your hard-earned money in crypto or stocks? Check out our comprehensive guide on Bitcoin vs S&P 500!
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