Memecoins
Will these top meme coins perform in May?
The cryptocurrency market has witnessed a gradual decline over the past three days. Bitcoin fell 5% and bulls lost $350 million in long liquidations across the entire market. In the midst of the collapse, meme coins suffered the same fate and experienced increased supply pressure.
Although industry leaders Dogecoin and Shiba Inu saw an average decline of 10%, the bullish sun is finally shining on them. With an intraday rally raising hopes of a turnaround, will these top meme coins perform in May?
Will new and trendy meme coins like BONK, PEPE or Floki rise higher? More importantly, are these the best new meme coins to buy and invest in 2024? Let’s take a look at our in-depth price analysis and find out if meme coins are worth buying this month.
The greatest performance of the DOGE meme coin under review
With a market capitalization of nearly $21.5 billion, Dogecoin is the eighth largest cryptocurrency in the world. The meme coin’s trading volume is almost $1.15 billion, but the DOGE price is struggling to rise. With a pullback phase underway, it is down 25% in 30 days.
The pullback phase forms a descending channel pattern on the daily chart and the solid resistance trendline leads to the third reversal. This undermines the breakout of the secondary resistance trend line and tests the $0.14 handle.
With three bearish days, the meme coin completes a bearish triple crow pattern at a crucial resistance zone. Therefore, short- and medium-term price action reflects an increase in supply pressure.
However, a bullish return from the trend-based Fibonacci level of 38.20% could immediately reverse the sentiments. A breakout rally could potentially push DOGE price higher towards the $0.2290 level.
On the other hand, the $0.1226 demand zone is a critical support known for multi-contact reversals as of late.
Falling canal traps Shiba Inu
As the second largest meme coin in the cryptocurrency space, Shiba Inu ranks 11th in the broader market with a market capitalization of nearly $13.5 billion. However, the bearish impact of Bitcoin’s difficult performance has led to a downward trend in the SHIB price.
The meme coin declines in a descending channel pattern as buying pressure decreases. Currently, the SHIB price is experiencing a sideways move as the $0.000020 level is becoming strong bullish.
With the bullish divergence in the RSI line strengthening the possibility of an uptrend, Shiba Inu finds itself at a crossroads. According to trend-based Fibonacci levels, the channel breakout rally will push the SHIB price to $0.000041.
Conversely, a decline below $0.000020 will test the supportive trend line near $0.000018.
Post-retest jump for PEPE meme coin
As one of the few non-dog-themed top meme coins, PEPE becomes a top pick among whales with a market cap of nearly $3.5 billion. Despite the 9% pullback earlier this week, the price action reflects a high probability of a reversal and bull run.
With the bearish wedge rally leading to a breakout of the inverted head and shoulder pattern, the underlying demand for PEPE is increasing. The recent pullback comes as the retest of the broken neckline at $0.0000078, close to the 50% Fibonacci level.
With an intraday growth of 4.77% and a morning star pattern in the 1D chart, the meme coin is poised for a post-retest jump. According to the Fibonacci retracement of the pullback phase, the uptrend may reach the $0.000014 mark if it recaptures the $0.000010 mark.
FLOKI Eyes increases by 65% with this new test
With the recent bullish return, FLOKI reminds the market that this is not just another dog-themed meme coin. With a market capitalization of $1.668 billion, the FLOKI coin price sees a year-to-date gain of 420%.
Additionally, the recent price action on the 4-hour chart shows a retest phase of a moving resistance trend line breakout. The pullback represents a decline of nearly 12% in four days. However, the intraday growth of 4.29% brings about a bullish reversal in the 4-hour chart and a morning star pattern in the 1D chart.
With higher chances of a bullish return, the MACD and signal lines give a bullish crossover. If the trend momentum sustains, FLOKI price could reach $0.00030.
Double bottom reversal for BONK
As the primary meme coin in the Solana ecosystem, BONK is a rising name in the meme coin industry. With a market capitalization of $1.544 billion, BONK price action is preparing for a double bottom reversal to extend the uptrend.
With a bullish breakout of a descending wedge, the meme coin floats at the 50% Fibonacci level. Furthermore, the 38.20% and 61.80% Fib levels serve as the boundary on both sides. Therefore, a breakout from either side will determine the future price trend.
However, the failure of the double top, leading to high anticipation of a double bottom reversal, teases an uptrend. A bullish breakout could push the BONK price to $0.00003786.