Memecoins DOGE and PEPE approaches key levels: Eyes for a recovery

Dogecoin (DOGE) and Pepe (PEPE) prices retest their crucial support level on Thursday after declining more than 10% this week. Sideline investors seeking to accumulate dog-themed and frog-themed memecoins may consider doing so at their support levels for a potential recovery rally ahead.

Dogecoin price shows potential for a recovery

Dogecoin price reached a new yearly high of $0.48 on December 8 and declined more than 23% in the next 10 days. On Tuesday, DOGE retested the 50-day Exponential Moving Average (EMA) at $0.35. This level roughly coincides with the 61.8% Fibonacci retracement level drawn from the November 3 low of $0.14 to its December 8 high of $0.48 at $0.35, making it a key reversal zone. At the time of writing on Thursday, it recovers slightly, trading around 0.36.

Sideline investors looking to accumulate the dog-themed memecoin can do around the $0.35 level. 

If the $0.35 support level holds and DOGE recovers, it could extend the recovery by 13.5% to retest its Tuesday high of $0.41. 

However, the daily chart's Relative Strength Index (RSI) has slipped below its neutral level of 50, indicating strong bearish momentum. If bulls are indeed making a comeback, the RSI must maintain its position above its neutral level. Such a development would add a tailwind to the recovery rally.

DOGE/USDT daily chart

However, if DOGE fails to find support around $0.35 and closes below $0.34, it could extend the decline by 7% to retest its next support level at $0.31.

PEPE price looks promising

Pepe price reached a new all-time high (ATH) of $0.000028 on December 9 and faced a correction of 26.6% in the next 9 days. As of Thurday, it retests the 50% price retracement level drawn from the November 4 low of $0.000007 to its ATH of $0.000028 at $0.000018. This level roughly coincides with the daily support level of $0.000017, making this a key reversal zone.

Like DOGE, sideline investors can accumulate the frog-themed memecoin around the $0.000018 level. 

If PEPE bounces off the $0.000018 level, it could extend the recovery by 28% to retest its Monday high of $0.000024. 

However, the daily chart's RSI has slipped below its neutral level of 50, indicating strong bearish momentum. If bulls are indeed making a comeback, the RSI must maintain its position above its neutral level. Such a development would add a tailwind to the recovery rally.

PEPE/USDT daily chart

Conversely, if PEPE fails to find support around $0.000018 and closes below $0.000017, it could extend the decline by 6.8% to retest its weekly support level at $0.000016.