Meme coins took a significant hit during the ongoing correction phase. Many crypto coins lost their 50% retracement level and continued to face bear wrath. However, the growing interest of investors in those discounted prices teases a recovery opportunity in these coins. Let’s study the technical charts of these top meme coins to find out.
SHIB Buyers Plan To Escape The Falling Channel
Source-Tradingview
For the majority of its correction rally, the SHIB price was resonating in a falling wedge pattern. The bears were using the resistance trendline to sell on rallies and drive the token to lower levels. Concerning the recent lower low of $0.00001715, the token price has lost 80% from the All-Time High of $0.00008845.
Today, the buyer finally managed to pierce the falling trendline, indicating the first hint to end the correction phase.
However, the technical chart shows the buyers still need to face the immediate hurdles of 20, 200-day EMA, and $0.00002542 horizontal resistance. Thus, SHIB price would be better positioned for a trend reversal if buyers were able to overcome this coincided resistance.
Contrary to the assumption, if sellers defended these levels, the token price would re-enter the falling channel and might sink to the $0.000017 mark.
Floki Inu (FLOKI): Descending Trendline Breakout Is Must For Bullish Recovery
Source- Tradingview
Since the downtrend initiated in November 2021, the FLOKI buyers are facing intense selling on a descending trendline. This dynamic trendline has greatly helped bears to sell on rallies and slide to the current low of $0.0000145. The memecoin has recently plunged below the October 27th intraday low($0.00005), threatening more pain in upcoming days.
However, on January 23rd, the daily candle showed a long lower price rejection, indicating the traders are buying at this support. If bulls could breach and sustain above the descending trendline, the token has a better possibility for a bullish reversal.
The Relative Strength Index(22) slope is plunged to oversold territory, indicating the coin price can be bought at a heavy discount.
Can DOGE Buyers Benefit From The Support Level Fakeout
Source- Tradingview
For the past two months, the Doge price was consolidating in a confined range, stretched from $0.216 and $0.14 mark. However, on January 21st, the sellers managed to nosedive below the bottom support, suggesting bear attack would continue on DOGE.
However, even after two weeks of the retest phase, the sellers couldn’t push the coin lower than $0.12, which eventually allowed buyers to climb back into the consolidation range, indicating a fakeout.
If buyers could sustain the coin above the $0.12 mark, the bulls would rechallenge the $0.14 to initiate a recovery phase.
The moving average convergence/divergence indicator projects a buy signal with MACD and signal line bullish crossover in the negative territory.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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