Top Meme Coins Test Key Supports: Is a Rebound on the Horizon?
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With the Bitcoin price crashing under the $58,000 support level, the altcoin market is on fire. Amongst the altcoins, the meme coins have taken a massive hit, with the top coins crashing to their crucial support levels.
With a market cap of $38.46 billion and a volume of $3.11 billion, the segment has more than doubled compared to last year’s $15 billion cap.
Further, Over the past year, the top meme coins have dropped an average of 63% from their 52-week high. Let’s take a closer look at the top meme coins to buy as the crypto market crashes.
Dogecoin (DOGE)The Dogecoin price shows a falling channel pattern in its daily chart and is testing a crucial support level of $0.095 as it breaks under the 0.10 psychological mark. The downfall occurs with the 6.10% bearish engulfing candle formed this Sunday.
However, the bullish divergence in the RSI line projects a potential bounce back this week. However, the dynamic 50-day EMA could provide resistance at $0.10962. Before that, the reclamation of the 0.10 psychological mark will be a tough task.
Shiba Inu (SHIB)Coming as the second biggest meme coin in the industry, Shiba Inu projects a similar price action to Dogecoin. Instead of a falling channel, the Shiba Inu price action forms a falling wedge pattern, which reflects higher price constriction and increases the possibility of a bullish breakout.
However, the bearish week for Shiba Inu accounts for a 12.19% drop and puts it back to the crucial support level of $0.00001288. However, the meme coin shows a similar bullish divergence and projects a potential bounce back to challenge the confidence of the resistance trendline and the 50-day EMA. A bullish breakout will put the 200-day EMA on the price target radar at $0.00001748.
FLOKI (FLOKI)The Floki price action projects a slightly similar but better underlying movement following the two big meme coins. Trapped in a falling channel pattern, the meme coin reflects a bearish crossover between the 50-day and 200-day EMA, a death cross.
However, with the recent negative cycle forming five bearish consecutive candles, the meme coin returns to its crucial support level at $0.000111. Furthermore, the meme coin reflects a positive trend in the daily RSI line.
Hence, the uptrend could signal a bullish bounce back to the $0.00015 peak. On the flip side, $0.00010 is psychological support to hold a breakdown run.
BRETT (BRETT)The BRETT meme coin based on the base blockchain, reveals a higher price range movement with an expanding channel. The meme coin has broken below its crucial support level in the daily chart at $0.00757.
With a 9.66% drop on Sunday, the Brett price trades at $0.07310 with an intraday gain of 1.40%. With a potential retest at play, the support levels under the limelight are $0.064 and $0.056.
POPCAT (POPCAT)Unlike the other meme coins, the POPCAT price reveals a crucial support trendline at play. With an expanding channel in the daily chart, the POPCAT memecoin reveals a negative cycle, testing the support trendline at $0.052. Putting an end to the bear cycle, the intraday gain of 4.25% teases a bounce back from the support trendline.
However, in case of a bearish breakdown, the crucial support levels are at $0.35 near the expanding channel’s baseline and $0.19. On the upside, the $0.70 and $0.95 are critical resistances.