As a seasoned analyst with years of observing the crypto market and its quirks, I find myself intrigued by the recent surge of memecoins like Dogecoin ($DOGE) and its brethren.
In my exploration of the cryptocurrency market, it’s intriguing to observe Bitcoin‘s struggle to surpass the $69,000 resistance level, with a majority of altcoins seemingly affected by the unpredictability surrounding the US election. However, it’s peculiar that memecoins, with Dogecoin ($DOGE) at the helm, are experiencing a surge. The question arises: can this upward trend persist?
Memecoins – canary in the coalmine?
The fact that the memecoins are starting to surge could be a sign that they are the canary in the coalmine. As far out on the risk curve as you can probably get, the memecoins are possibly the first to sense, and act on the first whiff of a crypto surge or collapse.
Memecoins now occupy a significant segment within the cryptocurrency market, likely causing consternation among supporters of robust fundamental cryptocurrencies and disdain from non-crypto enthusiasts who view this area as a playground for fools, potentially undermining overall stability.
Regardless of the past trends, if Bitcoin indeed enters another steep phase of its bull market, it’s likely that the altcoins following it will be fewer and more carefully chosen than in prior bull runs. However, there might also be a possibility of some popular meme coins joining the mix this time around.
Bearish divergence for $DOGE
Following a challenging phase that dogecoin investors likely found difficult, lasting approximately four weeks where the value dropped by over 64% from its March peak, the currency’s price finally surpassed the downward sloping trendline and has been gradually increasing for several weeks since then.
As an analyst, I’ve noticed that the DOGE price appears to be encountering resistance at its current level, which might lead to a correction in the near future. Upon closer inspection using the Stochastic RSI on a weekly scale, there seems to be a degree of apprehension. The indicators are nearing their peak, while the price is yet to touch the previous local high. This suggests a significant bearish divergence, implying that DOGE holders should exercise caution and prepare for a possible price decline in the near term.
$SHIB still beneath its descending trendline
Shiba Inu (SHIB) currently holds the second largest market cap among meme coins, surpassing $10.4 billion. Given this substantial worth, it’s crucial for SHIB to begin moving upward. Observing the weekly chart, the price remains below a downward trendline and has been previously turned away from the initial Fibonacci level.
From my perspective as an analyst, maintaining the current positive momentum of SHIB is crucial for the long term. If the Stochastic RSI, serving as a significant signal, begins to reverse on the chart, SHIB investors might face additional challenges ahead.
$PEPE breaks out but rolls over
In general, $PEPE often leads the pack during memecoin rallies. However, its weekly performance doesn’t appear too promising. After a robust breakout from a downward trendline that started in March, the price climbed higher for several weeks only to drop below a newer, shorter uptrend line.
Currently, the PEPE price seems to have a strong level of underlying support. However, if this support were to weaken, there’s a possibility that the price could drop significantly, potentially reaching the significant support level at 0.0000059 cents.
$WIF needs to make a higher low
The cryptocurrency Dog with a Hat (WIF) is popular among risk-takers. However, its weekly chart is quite intense for the less adventurous. After breaking free from a long-term downward pattern, the price skyrocketed initially but weakened over a three-week period, hitting a resistance at the 0.5 Fibonacci level and being pushed back. This downtrend might need to halt soon, but the Stochastic RSI suggests more falling prices. There’s a possibility that WIF could drop all the way down to its lowest price point of $1.39. A positive aspect is that WIF reached a new high close to $3 recently. If it can establish a higher low, the overall uptrend will remain intact.
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2024-11-05 15:10