As a seasoned analyst with years of experience in the volatile world of cryptocurrencies, I can confidently say that the current market conditions are testing even the most resilient investors. The sideways trajectory of Bitcoin (BTC) has undeniably cast a shadow over the altcoins, particularly the memecoins like $PEPE, $WIF, and $BONK.
In their current trend, Bitcoin (BTC) moving horizontally indicates that other cryptocurrencies, particularly memecoins like $PEPE, $WIF, and $BONK, are unlikely to excel as they have this year. The question now becomes, how much lower might these coins fall?
How great is your risk tolerance?
As an analyst, I often find myself pondering about altcoins and particularly memecoins: What level of risk am I willing to embrace? The allure of memecoins can be enticing when the overall market is surging, but when the trend reverses, investors holding memecoins should brace themselves for volatility, as they may witness losses.
$PEPE sits on strong support
For the cryptocurrency PEPE, the daily chart shows a distinct pattern. At present, its value hovers above the 0.786 Fibonacci level, which represents the deepest of these points. If the price were to drop below this point, a robust horizontal support level can be found at $0.00000592.
$WIF breaks down through support
Currently, the WIF price isn’t doing well. It has plummeted beneath the previous support level at $1.49, transforming it into resistance. The trend seems to be forming a descending channel, and if this trend persists, the 0.786 Fibonacci level offers potential support at approximately $1.10. A possible rebound may happen near the bottom of the channel, which lies below this point.
Should the crypto market experience unfavorable conditions, there’s a minimal level of potential support around $0.83. However, if this support fails, the price of WIF might continue to decline, potentially reaching the horizontal support level at approximately $0.43.
$BONK breaks price structures to the downside
The price of BONK is shattering some patterns, having dipped below the 0.786 Fibonacci level and breaking through its upward trend. If the BONK price continues to decrease and breaches the horizontal support at $0.0000162, this could signal a more significant price drop if that resistance is confirmed.
A lower low at $0.0000121 would probably surpass the absolute last line in the sand.
If $BTC turns around, memecoins will surge
As a seasoned cryptocurrency investor with over five years of experience in this volatile market, I can confidently say that the potential downfalls you mentioned for these memecoins are indeed plausible scenarios. However, it’s important to remember that everything revolves around the price action of Bitcoin ($BTC). If Bitcoin manages to break free from its prolonged period of sideways movement, it could potentially propel these three meme coins out of their current gloomy situations and send them soaring.
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2024-08-19 16:02