Memecoins recently found local support. Will the market continue to create new highs?
Last week, memecoins experienced a sharp 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
DOGE/USDT
Last week, DOGE was looking to confirm support at $0.08. Since then, the coin has found support and is working on its next leg to the upside.
The market is sitting at a pivotal level - the bulls need a close above the $0.088 resistance zone to extend the rally. Rejection from this level would assist bears with a push towards the $0.08 zone.
Also Read: Breakout vs Fakeout (False Breakout)
SHIB/USDT
This week, SHIB continues to look stronger than the other memecoins. The token has established strong support above the area of interest shown in the chart.
At the time of writing, SHIB is looking to continue to the upside. The bears can still take over by rejecting the price at this level. The bulls need to close and hold the price above the 1,400 level to extend this rally.
BABYDOGE/USDT
Last week, BABYDOGE printed a new monthly high and found resistance. Since then, the token has been creating lower highs and lower lows.
At the time of writing, the market is approaching the 2.7 support level. The bulls need to keep the price above this level if they want to extend this rally. Losing it will shift the market structure in favor of the bears and could lead towards a sell-off.
Also Read: What Are Ranges in Trading and How to Use Them?
CATE/USDT
This week, CATE was trying to break above the September low. However, the token failed and is now looking for support. The bulls need to stay above the area of interest to keep the market structure in their favor.
At the time of writing, CATE is sitting in a consolidation pattern with no major signs of breaking out. Something to look for this week is to see if the area of interest shown in the chart above holds as support.
Also Read: What Is Fundamental Analysis in Cryptocurrency and Stocks?
FLOKI/USDT
Last week, FLOKI was trying to confirm support after printing a new monthly high. Since then, the token has continued to create higher highs and higher lows. The bulls need to stay above the 3,500 support level to continue this movement. Losing this level will shift the market structure in favor of the bears.
SAITAMA/USDT
At the time of writing, there are no major signs of the price breaking out of its range. This level will continue to be a battle between the bulls and bears.
Also Read: 2019 vs 2023: Analyzing The Market Structures
Summary
Here is a summary of the above:
- DOGE has confirmed support.
- SHIB is looking to extend this move to the upside.
- BABYDOGE is establishing a new range.
- CATE is looking for support.
- FLOKI is looking for a higher low.
- 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.
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