Memecoins have fallen back into the major support zone. Will the market hold this level?
Last week, memecoins were sitting at a major support level. Later, they printed lower highs and lower 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.
DOGE/USDT
Last week, DOGE tested the channel midline as resistance. The market has shown a strong reaction at the $0.061 level. Losing this level would lead to lower highs and lower lows.
The trend remains in favor of bears. At the time of writing, there are no major signs of a reversal.
The area of interest and channel resistance are in the same zone, which makes it a critical level. The DOGE bulls need to successfully reclaim it.
A rejection from $0.065 will trigger a sell-off towards $0.05.
SHIB/USDT
This week, SHIB confirmed a higher low, which was followed by a lower high. Since then the market continued to sell and create lower lows.
Taking a closer look, there are signs of support. The last time the price was at this level, SHIB broke out. If the bulls can hold this level successfully, there may be a nice reaction to the upside.
If there is a 4-hour close above 1,275, expect to see a retest of 1,375. However, if there is a rejection from the area of interest, it will trigger a sell-off towards 890.
BABYDOGE/USDT
Last week, BABYDOGE confirmed a higher low. Since then, the market has printed a lower high and a lower low. It has fully retraced back to its support level.
At the time of writing, BABYDOGE has confirmed support. The bulls need to step in and hold this zone.
CATE/USDT
Last week, CATE was aiming to break above the resistance. It failed and formed lower highs and lower lows.
Zooming out, the trend remains in favor of the bulls. The market is sitting at a pivotal level. There will be a strong reaction soon.
FLOKI/USDT
FLOKI has returned to its previous breakout zone. A successful reclaim of the June high puts the market structure in the favor of the bulls.
This week, FLOKI is aiming to flip resistance into support. This is a critical level for the token. Rejection from this level will lead to a lower low.
If there is a 4-hour close above 1,111, expect to see a retest of 1,300. However, a rejection from this zone will lead to a structural breakdown.
SAITAMA/USDT
SAITAMA successfully reclaimed the level it tested twice as major support.
Taking a look at the most recent price action, SAITAMA is showing signs of further relief. The bulls need to continue to hold their ground.
If there is a 4-hour close above 2,205, expect to see a push towards 2,500. However, a rejection from the area of interest will lead to a sell-off towards 1,950.
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 losing bullish structure.
● SHIB is sitting at a pivotal level.
● BABYDOGE bulls are starting to lose control.
● CATE's trend remains in favor of the bulls.
● FLOKI is sitting at a critical level.
● SAITAMA bulls are sitting at the last line of defense.
Something to look out for this week is if the new August low will hold. Losing this level will lead to a lower low.
Remember that this is all based on the subjective views of the writer. As always do your own research.
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