fxstreet.com
- Dogecoin eyes February lows after nearly 23% decline in the past seven days.
- Shiba Inu could plummet another 13% amid the broader crypto market correction.
- Bonk price is likely to regain lost ground as technical indicators point at recovery.
Crypto markets are suffering a market-wide correction, with Bitcoin ($BTC), Ethereum (ETH) and XRP prices down 14%, 12% and 10%, respectively, in the past seven days. In the same time frame, meme coins Dogecoin ($DOGE), Shiba Inu ($SHIB) and Bonk ($BONK) suffered an even steeper correction, accumulating losses of more than 20% each.
The technical picture of the top three meme coins suggests that while $DOGE and $SHIB are likely to extend the recent decline, $BONK is showing some signs of recovery.
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Price performance between April 24 and May 1
Dogecoin likely to revisit lows seen at the end of February
Dogecoin has been in a downward trend since March 28. The meme coin has formed consistently lower highs and lower lows. Nearly a month ago, on April 2, there was a bearish sign in Dogecoin’s Moving Average Convergence Divergence (MACD) indicator.
The signal line crossed over the MACD line, a bearish crossover that was followed by a further decline in $DOGE price. In the ongoing correction, the February 29 and 28 lows of $0.1113 and $0.0947 are the next support levels.
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$DOGE/$USDT 1-day chart
A daily candlestick close above April 30 close at $0.1333 could invalidate the bearish thesis, indicating the possibility of a price recovery. In such a scenario, the April 30 high at $0.1460 is the immediate resistance for $DOGE.
Shiba Inu holders brace for further correction
$SHIB is gearing up for a 13% correction, or a decline to the April 13 low at $0.00001830, as its downward trend looks likely to persist.. The Relative Strength Index (RSI), a momentum oscillator, is at its lowest level since October 2023 at 34.66. Once RSI makes a comeback from its decline below 30, it could generate a buy signal, implying that $SHIB is oversold.
The Moving Average Convergence/ Divergence (MACD) indicator crossed below the signal line on Monday. This reaffirms the bearish thesis for the Shiba-Inu-themed cryptocurrency.
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$SHIB/$USDT 1-day chart
If $SHIB closes above $0.00002476 (the 23.6% Fibonacci retracement level of the decline between the March 5 top of $0.00004567 and the April 13 low of $0.00001830), it could invalidate the bearish thesis. $SHIB faces immediate resistance at the April 23 high at $0.00002814.
Bonk likely to regain lost ground, bullish signs flash
Bonk is the only meme coin in the top three which is flashing signs of recovery. $BONK broke out of its bearish trend on April 20, as signaled by the Moving Average Convergence/ Divergence (MACD) crossing above the signal line. This is typically considered a bullish sign.
The RSI has fallen to 47.79 at the time of writing, closer to 50 (neutral zone). $BONK faces immediate resistance at $0.000026, the April 30 high.
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$BONK/$USDT 1-day chart
A daily candlestick close under the 50% Fibonacci retracement at $0.00002089 could invalidate the bullish thesis. Looking down, $0.00002089 and $0.00001882 are two support levels for $BONK, coinciding with the 50% and 61.8% Fibonacci retracement levels of the climb from the April 13 low at $0.00001212 to the April 25 high at $0.00002966.