With the market finding some stability, let's see how the memecoin category is performing! Read more
Memecoins are in the middle of a decline. Is there more to come? Or is the bottom near? Read below to find out!
Last week, we saw memecoins approaching a critical level and getting rejected. Since then, the memecoin market has been in a sell-off situation.
In this week's technical analysis into DOGE, SHIB, BABYDOGE, CATE, FLOKI and SAITAMA in the 4-hour time frame using the logarithmic chart.
DOGE/USDT
Last week, DOGE got rejected perfectly by the area of interest shown above. The coin is now approaching a minor support level.
If we zoom out, we can see the major trend remains in favor of the bears. At the time of writing, there are no major signs of a reversal. Shifting towards the most recent price action, DOGE could form a double bottom at this level. DOGE needs a bounce off this level to prevent further downfall.
July has been quite bearish. With only a couple of days left for the monthly candle to close, we may see some short-term relief. However, the bulls are currently losing strength.
If there is a 4-hour close above $0.062, expect to see a confirmation of support.
Also Read: Scalping vs Swing Trading!
SHIB/USDT
In this week's analysis, SHIB continues to respect its channel. Last week's area of interest did not hold as support. Since then, we have seen SHIB selling off. At the time of writing, the token is looking for support. Bulls need a confirmation above channel support to hold the structure.
There is no confirmation this level will hold as support. Zooming out, you can see SHIB has been respecting a bullish channel. Will this structure continue to hold?
A 4-hour close above 1,060 will confirm support. However, a close below 1,045 will trigger a trip towards 990.
BABYDOGE/USDT
Last week, BABYDOGE was looking to break out of the area of interest shown above and failed. Since then, the market has been printing lower highs and lower lows. Bears remain in control of the major trend.
Shifting towards the most recent price action, you can see BABYDOGE is sitting on minor support. At the time of writing, there is no confirmation this level will hold. Losing this level could send the price towards the June low.
If the token closes above 1,190, It may move towards 1,250. However, if there is a rejection from this level, it will trigger a deeper sell-off to 990.
Check out our list of the best technical indicators for crypto and stocks!
CATE/USDT
Last week, CATE successfully closed above the area of interest. It has been creating higher highs and higher lows.
Zooming out, you can see the major trend remains in favor of bears. Since forming its higher high at 4,450, the token has been in a minor downtrend. At the time of writing, CATE is looking for support.
If there is a 4-hour close above 4,200, expect to see some continuation to the upside. However, a close below 4,011 will trigger a sell-off.
FLOKI/USDT
Since last week, FLOKI has been in an uptrend. Is it setting up for another breakout?
FLOKI is currently attempting to break the area of interest. A successful close above this level should cause a nice breakout. FLOKI bulls came back with full force this week.
If there is a 4-hour close above the new area of interest, expect to see a breakout.
Also Read: Cross vs Isolated Margin!
SAITAMA/USDT
SAITAMA’s price action continues to range between 3,000 and 3,800. Since its failed attempt to break out of its range, a minor downtrend has been formed.
Shifting towards the most recent price action, you can see minor support has been found. At the time of writing, there is no confirmation of a reversal. A close above or below the range will be pivotal.
If there is a 4-hour close above 3,350, expect to see the bulls test the range high. However, a rejection from the minor downtrend will trigger further consolidation inside the range.
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 looking weak again.
● SHIB is looking for confirmation of support.
● BABYDOGE is respecting its bearish structure.
● CATE is searching for support.
● FLOKI is continuining its breakout momentum.
● SAITAMA is respecting its range.
Something to look out for this week is if the market can successfully flip resistance into 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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