Major Memecoins Drop 40-60% During Downturn: What next for Dogecoin ($DOGE), Pepe ($PEPE), and Bonk ($BONK)?

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As a seasoned crypto investor with battle scars from numerous market cycles, I can say this downturn has been a tough one, especially for those holding memecoins like $DOGE, $PEPE, and $BONK. Having been through multiple bull runs and bear markets, I’ve learned to weather the storms and keep faith in the long-term potential of cryptocurrencies.

In the current market slump, high-performing altcoins have seen a decline of approximately 20-30%. However, the situation is more severe in the memecoin sector, where losses range from 40-60%. We’re examining the possibility of recovery for coins like $DOGE, $PEPE, and $BONK.

Over the past fortnight, it’s been quite challenging for altcoin investors. As Bitcoin ($BTC) has found it hard to reverse its current trend, altcoins have generally performed worse. On the other hand, those who hold memecoins may find the 40% drop over the last two weeks a tough pill to swallow.

Clear support and a bounce for $DOGE

The weekly chart for $DOGE shows a very clear picture. It can be seen that the spectacular rise from $0.08 in early August reached the 0.618 Fibonacci at $0.47 in November. 

Such a massive price rise really did need a correction, so over the last couple of weeks a dip of 43% did much to help the market absorb the preceding rise. The fact that this dip went down to touch an ascending trendline which began in late 2022 is very bullish. 

At present, the Dogecoin price is holding steady at a robust level of horizontal support that aligns with the 0.382 Fibonacci retracement line. Potential future price increases could reach the levels indicated in the chart displayed above.

$PEPE buoyed up by strong horizontal support

Over the past few weeks, $PEPE has experienced significant fluctuations. A typical bullish pattern called a ‘flag’ formed and the price seemed poised for an upward surge. However, what followed was a sharp drop that pushed the price down to retest and verify the bottom of the flag. This represented a 49% reversal from the high point.

At present, the value is showing signs of increasing after finding robust horizontal support at 0.000017 dollars. If the PEPE price manages to break free from this flag formation, investors should remain vigilant for a possible future head-and-shoulders reversal pattern. By avoiding such a scenario, the all-time high of 0.000028 dollars would become the significant goal.

$BONK bulls need to break the descending trendline

In simpler terms, the cryptocurrency BONK has experienced a larger decline compared to other popular meme coins. After reaching an all-time high of $0.000062, there was a significant drop of about 60%. Now, it’s up to the bullish investors (those who believe prices will rise) to purchase and increase the price so that it can break free from its current downward trendline.

It’s highly probable that this event will occur, considering the significant drop we’ve already witnessed. In case it does, you’ll find the targets indicated on the chart above. However, should the downtrend persist, the ascending bull market trendline might serve as a possible last line of defense.

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2024-12-24 15:01