As Bitcoin ($BTC) continues its latest correctional phase, the memecoins are falling much faster. $DOGE, $PEPE, and $WIF are crowd favourites. Where would the best levels for a bounce be?
$DOGE price in a bullish ascending triangle
Source: TradingView
The $DOGE price in the short time frame is looking quite good. A rejection at $0.47 was probably to be expected, and the price is now heading back down. The 0.382 Fibonacci at $0.43 has already been touched, and now it remains to be seen whether the price will continue further down.
Favourite level for a bounce is possibly $0.41, or a wick down to the 0.618 at $0.395 is also a possibility. The ascending trendline could also provide some support.
One very bullish factor to notice is that the price is possibly within an ascending triangle. These patterns are generally very bullish, and so it might be expected that the $DOGE price could indeed bounce from the bottom trendline of this pattern. If $DOGE does succeed in breaking to the top of this potential ascending triangle, the measured move would be to $0.58.
A possible flag retest for $PEPE
Source: TradingView
The 4-hour chart for $PEPE shows that the price recently broke out of a flag. While the measured move for the flag is still a long way off, a correction is going to come first. This correction could take the price all the way back to retest the top of the flag at $0.000022, and there is even the possibility that the price could come back inside this pattern. $0.000021 at the 0.618, and $0.000019 at the 0.786, are also possible bounce levels.
Potential W formation for $WIF
Source: TradingView
The daily chart for $WIF is showing that the price is falling fast. There is some support at the current price level, but stronger support is below at $3.19. There is also the possibility that the price goes further down to the support at $2.95.
If a bounce does take place at one of these two levels, there is the potential for the formation of a big W chart pattern. This could send $WIF much higher if it should play out.
A cautionary note
One major factor to consider, and this goes for all the three memecoins mentioned above, is that the weekly Stochastic RSIs are at, or very near the top. This means that there is the potential for a longer term pull back.
The indicator lines could stay at the top for quite some time, but it is certainly a cautionary note for future price action.
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.
