The addition of 138 new meme coins to CoinMarketCap is indicative of a growing trend in the cryptocurrency market. However, amidst this surge, Dogecoin (DOGE) stands out with gains of nearly 12% over the past week. In contrast, other meme coins like Shiba Inu (SHIB) and Bonk (BONK) are struggling to maintain momentum.
While Dogecoin has sustained gains, technical indicators such as the Moving Average Convergence Divergence (MACD) suggest a potential downturn. The MACD indicates a bearish crossover, signaling a shift toward selling pressure. This comes as the market cools down from recent highs and increases the risk of a downturn.
Investors in Dogecoin face potential losses as the cryptocurrency teeters on a crucial support level. The Global In/Out of the Money (GIOM) indicator reveals that a significant amount of DOGE bought between $0.13 and $0.15 could become unprofitable if prices decline further. This could incentivize investors to hold onto their positions, further exacerbating the downward pressure on Dogecoin.
At the time of writing, Dogecoin is trading at $0.14757 on Binance, reflecting a 12.38% increase over the past week.
Shiba Inu (SHIB) has experienced a surge of 10.4% in the past 24 hours, approaching $0.000026. This price jump has attracted the attention of analysts and traders, sparking debates about its driving factors. However, SHIB is facing resistance due to a descending triangle pattern forming on the charts. This pattern is considered a bearish signal, suggesting a dominance of sellers over buyers and resulting in progressively lower highs. Currently, SHIB is encountering resistance along the upper trend line of this triangle, with established support around $0.0000237. If this support level fails, the next significant level to watch for is $0.000021.
The prevailing market sentiment for SHIB appears to be bearish, as there is a risk of breaching the critical $0.000021 support level. A breach below this mark could trigger a downward spiral, potentially testing the $0.00002 threshold and leading to further losses.
BONK Coin, on the other hand, has been trading within a defined range, with its upper boundary at $0.00002966 and lower boundary at $0.00002089. Despite a recent surge, BONK has retraced all its gains over the past week and is currently priced at $0.00002320. Technical indicators suggest negative momentum in BONK’s price action, indicating a potential liquidity sweep at $0.00001212, a significant Fibonacci retracement level.