Thanks to very optimistic exchange listings, memecoins such as $PEPE, Dog Wif Hat ($WIF), and $BONK have recently been showing strong growth. But after such an explosive rise, is now the time for an all-out decline?
$PEPE price forms a bull flag
Source: TradingView
The price of $PEPE has surged nearly 100% in four days, confirming the view of many that memecoins are still a niche sector with the most potential upside in this bull market.
Despite the price decline since then, the short-term chart of $PEPE shows that this decline is unlikely to continue. Instead, the formation of a bull flag is expected to lead to more upside ahead.
Nasty candles paint after $PEPE surge
Source: TradingView
On the daily chart, we can see that the intense uptrend left some pretty nasty candles on Thursday. A long wick pointing upwards is a heavy sell signal. However, the price rebounded back to the 0.382 Fibonacci level. If this continues, this is a bullish retracement. That said, the daily stochastic RSI has reached a peak, signaling potentially negative price momentum.
$WIF explodes 150% higher.
Source: TradingView
$WIF is up 150%, similar to $PEPE, but has been up for 9 days. The surge caused $WIF to cross a descending trend line that would last until April, when the price reached $4.73 before falling again.
While it is likely that $WIF will continue to rise, we are now looking at lower lows and a potential double top, especially if Bitcoin starts to leave $90,000 in the rearview mirror. To avoid this negative situation, $WIF bulls should push the price above $4.88.
$BONK rises after 25% retracement.
Source: TradingView
$BONK has seen a huge rise in the last 11 days, surging 156%. The price retraced 25% during Thursday and Friday to retest the 0.382 Fibonacci level and is now trending higher again. The spike failed to push higher local highs, so this is probably an important achievement for the bulls to achieve in the current uptrend. If successful, it would be only about 7.8% below the all-time high.
In summary, $PEPE, $WIF, and $BONK can all continue to rise in price as long as $BTC continues its own rise toward $100,000. A modest reversal in Bitcoin would likely have a much worse impact on memecoins.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
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