Top 3 meme coins Dogecoin, Shiba Inu and Bonk: Recovery likely if Bitcoin freefall ends


  • Dogecoin is likely poised to recover after sweeping liquidity at $0.1201. 
  • Shiba Inu could observe a 17% decline before recovery in the meme coin. 
  • Bonk holders gear up for nearly 28% gains in uptrend. 

Meme coins Dogecoin (DOGE), Shiba Inu (SHIB) and Bonk (BONK) look primed for recovery, according to technical indicators, despite the broader crypto market correction prompted by the sharp drop in Bitcoin (BTC) price.

BTC price has plunged around 11% since April 30. If Bitcoin’s decline grinds to a halt, assets in other crypto sectors including meme coins – which are considered more speculative than most digital assets – could reverse their recent downtrend. 

Dogecoin poised for recovery

Dogecoin is currently in a downtrend, forming lower lows and lower highs since March 28 top of $0.2288. The meme coin’s daily chart shows a fair value gap (FVG) extending between $0.13959 and $0.13395. DOGE price could tackle this imbalance and fill the gap before correcting further. 

The Relative Strength Index (RSI), a momentum oscillator, is at its lowest since October at 33.04. DOGE’s RSI is likely headed to the oversold zone below 30, and an attempt to recover from the drop into this area could generate a buy signal for Dogecoin. 

Sidelined traders could enter a trade in the Shiba-Inu-themed meme coin below the FVG and close to the May 1 low of $0.1201, the February 29 low of $0.1113 and the February 28 low of $0.0947. 

Dogecoin

DOGE/USDT 1-day chart 

DOGE could find support at the February 28 and 29 lows of $0.0947 and $0.1113, respectively, in the event of a decline.

Shiba Inu could sweep $0.000018 lows before recovery

Shiba Inu is currently exchanging hands at $0.00002210, closer to the midpoint of the Donchian Channel. This volatility indicator helps analysts identify trends in an asset, and also determine optimal points for entry and exit. 

There are two entry points for Shiba Inu traders at $0.00002210 and $0.00002057, the first and second entry, with a target of the upper boundary of the channel, or the 20-day high in SHIB price, at $0.00002820. 

SHIB price is poised for a nearly 17% decline if it sweeps liquidity at the lower boundary of the channel. The meme coin could offer 27% gains to traders who enter at $0.00002210, with a target of $0.00002820. 

SHIB

SHIB/USDT 1-day chart 

If Shiba Inu sees a daily candlestick close above $0.00002476 (the 23.6% Fibonacci retracement of the decline between March 5 and April 13), it could invalidate the bearish thesis. Immediate support for SHIB is the second entry level at $0.00002057. 

Bonk holders gear for 28% gains in uptrend 

Bonk broke out from its downward trend on April 20. Since then, the meme coin has formed higher highs and higher lows. The speculative asset looks poised for nearly 28% gains as it continues climbing higher.

BONK price is $0.00002300 at the time of writing. The Moving Average Convergence Divergence indicator saw a crossover of the MACD line above the signal line, a bullish sign for BONK. The on-balance volume indicator is climbing alongside the increase in BONK price, signaling increasing buying pressure. 

Bonk

BONK/USDT 1-day chart 

A daily candlestick close below $0.00002089 could invalidate the bullish thesis. BONK price could find support at $0.00001882, the 61.8% Fibonacci retracement of its climb from April 13 to April 25 top of $0.00002966. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP struggles to make comeback above $0.50 as Ripple CEO will face trial

XRP struggles to make comeback above $0.50 as Ripple CEO will face trial

XRP remains range-bound under the $0.50 resistance on Friday after news that Ripple CEO Brad Garlinghouse will have to face a trial in California regarding some statements he made in 2017. 

More Ripple News

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation.

More Bitcoin News

1Inch looks poised for downward correction

1Inch looks poised for downward correction

1inch price moves lower by 3% on Friday after being rejected by the 200-day Exponential Moving Average on Thursday. On-chain data shows a decline in Development Activity, signaling negative sentiment among 1INCH investors. 

More Cryptocurrencies News

LayerZero ZRO token tumbles 24% in 24 hours, hit by airdrop-related controversy

LayerZero ZRO token tumbles 24% in 24 hours, hit by airdrop-related controversy

LayerZero’s ZRO token airdrop went live on Thursday, with a claiming mechanism called Proof of Donation. The team requires 10 cents in USDC, USDT or Ether per ZRO token with the aim to weed out manipulative Sybil entities. 

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods?

Bitcoin: Is BTC out of the woods?

Bitcoin (BTC) appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation. Technical indicators suggest BTC might experience a 3% correction in the near term before continuing its upward trajectory.

Read full analysis

BTC

ETH

XRP