While the meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) could not hold their gains, the token Pepe (PEPE) staged a spectacular rally.
While other memcoins echoed the dynamics of bitcoin (BTC) last weekend.
The PEPE token, inspired by the Pepe the Frog meme, suddenly ranked 17th by daily trading volume and broke into the top 120 by market capitalization.
This prompted many market participants to talk about the beginning of “memcoin season.”
In addition, the market began discussing whether PEPE has enough potential to join DOGE and SHIB and become one of the top three meme coins.
Dogecoin (DOGE) gives mixed signals
The Dogecoin Project Dogecoin is one of the most recognizable “calling cards” of the crypto market and has many fans.
Although it appeared in 2013 as a joke coin, many already believe that DOGE has outgrown the status of a simple meme.
As the results of technical analysis of the 6-hour chart show, the picture on DOGE is mixed. On the one hand, on April 21 the price made a bearish break of the ascending support line.
This may be a signal of the end of the previous growth. In addition, the token is trading below the resistance area of $0.082.
On the other hand, Dogecoin has formed a triple base, which is considered a bullish pattern and may cause the price to rise.
This will be confirmed in the case of a break above the resistance area of $0.082.
In the meantime, the Relative Strength Index (RSI) is signaling a bullish divergence (green line), supporting a bullish pattern.
We can speak of a bullish divergence when the decline in price is not accompanied by a decline in momentum.
So the direction of DOGE’s future trend will depend on whether the price falls below $0.078 or breaks above $0.082.
In the first case the fall to $0.070 will be possible, and in the second case the price may rise to $0.100.
Shiba Inu (SHIB) rate may fall sharply
The popular meme coin SHIB, created by the Shiba Inu project, is an ERC-20 format token and one of the main rivals of Dogecoin.
On April 20 the token made a bearish breakout from the rising parallel channel. This signals the neutralization of the previous structure and bodes well for the market to enter a new phase of decline.
The price of Shiba Inu is now barely holding the area of horizontal support at $0.00100.
The price of Shiba Inu is now barely holding on to horizontal support at $0.0000100.. It is the last line of defense before the level of $0.0000088, which the price has not reached since January.
If it is broken, SHIB could reach the support area of $0.00000880, which would be a 12% drawdown from current levels.
In case of a rebound the market may test the support line of the previous channel at $0.0000115. One of these scenarios could materialize in the next 24 hours.
PEPE at the forefront of memcoins
“Meme altcoin” PEPE is actively gaining support from cryptocurrency exchanges. At the time of writing, the token is listed on a dozen centralized and decentralized trading floors.
Over the last 12 days, PEPE has gained 980% and hit a historical high of $0.00000148 on May 1.The Relative Strength Indicator (RSI) is now showing strong bearish divergence signals (green line)..
Such divergence is formed when the growth of the price is not accompanied by the growth of momentum. This often precedes a sharp decline in price.
In this case, the nearest support will come into play around $0.00000081 (the 0.5 Fibonacci level).
Fibonacci levels are traditionally considered the most probable springboards for stopping and reversing the price after a significant advance in any one direction.
As expected, at these levels, the market can win back some of the distance traveled and only then resume the movement in the original direction. In addition, they may determine the ultimate levels of price movement.
From this point of view and in the case of a rising market, the next target and potential high could be $0.00000187 (the level of 1.61 of the last Fibonacci retracement).