With market sentiment in the toilet, memecoins would probably be the last thing investors and traders would be thinking about right now. That said, if Bitcoin (BTC) is potentially bottoming, there could be money to be made by those brave or foolhardy enough to buy them.
First off, it has to be said that buying memecoins at any time, let alone when traditional markets could be sinking into recession, is the ultimate speculation. This is arguably as far out on the risk curve as anyone can get, but it’s for this reason that traders will go there.
Lower highs and lows for $DOGE so far
Source: TradingView
The daily chart for $DOGE shows how the October 10 collapse actually took the price almost perfectly to the measured downside move out of the ascending wedge. Ignoring the big candle wick, the price has continued to fall, making lower highs and lower lows.
Nevertheless, a bottom could be beginning to form. There is a trendline stretching all the way from April (faint dotted line), and this is now converging with strong horizontal support at $0.15.
The $DOGE price is currently trying to move higher after a successful trend break, however, the $0.18 horizontal resistance is proving to be a tough barrier so far.
Potential 100% rise for $DOGE?
Source: TradingView
The weekly chart reveals that the Stochastic RSI indicators are at the bottom. The last time these indicators crossed up, just for the first of three spikes, a 98% gain was the result.
Look for the bulls to confirm above the $0.18 resistance level, which is also likely to coincide with a trend break. Fibonacci targets are in the chart. The 0.618 level is almost a 100% rise from here.
$PEPE starting to challenge downtrend?
Source: TradingView
The daily chart for $PEPE reveals that the price is hovering around the strong $0.00000590 horizontal support level. While it has currently dipped below, much further downside is not envisioned. Instead, the price is more likely to break through the downtrend line. This has already happened for a previous descending trendline (faint dotted line) and the RSI indicator at the bottom of the chart is reflecting this.
Major trendline breakout is key for $PEPE
Source: TradingView
The weekly chart for $PEPE shows just how important the horizontal support is. It can also be seen that the price is moving towards the major descending trendline. A confirmed break of this trendline, plus moving above the resistances could put $PEPE on course for the major resistance at $0.000016 – a 172% gain from its current price.
$PENGU refuses to fall further
Source: TradingView
The daily chart for $PENGU looked incredibly bullish before the price fell through the bottom of the bull flag and also broke below the $0.017 support, turning it into resistance. All this said, since the breakdown, the price has refused to fall further and has jagged up and down along the $0.0145 horizontal support. If the price does fall lower from here, there is the possibility that it could fall to $0.012.
At the bottom of the chart, the RSI indicator is still respecting the downtrend line. Until there is a break of this trend we can’t expect a break up in the price action, so it will need to be watched closely.
Bearish and bullish factors for $PENGU
Source: TradingView
The weekly chart for $PENGU illustrates both bearish and bullish factors. The bearish one is the ascending trendline which the price has fallen below and is currently confirming below. In opposition to this are the Stochastic RSI indicators. They are at rock bottom and will therefore start moving back to the upside at some point. If they do so, and pass the 20.00 level, this could be the signal for a major rally.
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.