Memecoins have taken a fearful beating over the last couple of months. Some are down as much as 85% and more. Is now the time to sell and cut your losses, or is there still hope for a fightback? $DOGE, $PEPE, and $WIF are analysed.
Will $DOGE take hold below the 28-month-long ascending trendline?
Source: TradingView
Of all the memecoins, $DOGE arguably has the best chance of survival, with the possibility that somehow Elon Musk will make something of it. Putting this aside, from a technical analysis perspective, $DOGE is in a critical position.
A long-time ascending trendline, that goes all the way back to 2022, is in danger of being lost by the $DOGE price. There is still time left in this week, and it will be crucial that the bulls push the price back above this trendline before the close of play on Sunday.
As it stands, the price is shaping to confirm the breakdown. However, big upside price momentum, in the form of the weekly Stochastic RSI, is potentially ready to get back under the price and lift it higher in the next two to three weeks. This may be too late to avoid the breakdown confirmation under the ascending trendline, but it could have the effect of turning this into a fake-out and put the price back in an upward trajectory.
Life in $PEPE still
Source: TradingView
The $PEPE price is at its own crucially important support of the ascending bull market trend line, and strong horizontal supports. The bulls simply must hold the line here. If the price dips under this support and then confirms below, it would be a serious setback for the $PEPE bulls.
That said, there is quite a long wick to the downside from last week’s candle so this could be evidence that a bottom has formed. Into the bargain, the Stochastic RSI has bottomed and the indicator lines may cross up soon, bringing that lifeblood in the form of big upside price momentum. This one is certainly not dead yet.
$WIF not dead yet, but …
Source: TradingView
$WIF may not be dead yet, but it isn’t far from it. This is a truly desperate chart, which suggests the price may be on its way down to the next stop at $0.33, which is nearly half of its current value of $0.60.
Yes, the Stochastic RSI has bottomed, but it looks like it is flat-lining. A recovery for $WIF from here is perhaps unlikely.
Is this the end for most memecoins?
For those still holding memecoins, or those looking to trade bounces, it should be borne in mind that this niche is extremely volatile and unreliable. What is starting to happen is that some newly released memecoins are absorbing a major part of the value in this niche, before they themselves are dumped, and everyone waits for the next big release that will make them millions. If you are not an experienced trader, this niche is perhaps best left well alone.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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