Top 3 meme coins price prediction Dogecoin, Shiba Inu, Bonk: Memes outperform Bitcoin on two week timeframe
- Dogecoin could climb toward $0.20, an opportunity for sidelined traders to enter.
- Shiba Inu bleeds for the eighth consecutive day, SHIB could revisit April low of $0.000018.
- Bonk eyes nearly 9% gains, uptrend supported with positive momentum.
Crypto sector performance over the past two weeks shows meme coins emerged as clear outperformers, beating Bitcoin, AI coins and Binance coin categories. Bitcoin price losses nearly 4% of its value on Tuesday, exchanging hands at $61,657 on Binance at the time of writing.
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Crypto sector performance for the past two weeks
Meme season could mark the end of the bull run cycle
Analyst behind the X handle @21blacky says that when the meme season ends, market participants typically realize that a Bitcoin local top is most definitely in. The end of meme season (meme season is a time frame in which meme coins see gains in their prices), is considered bearish for the market.
The analyst believes that meme season is far from over. Bitcoin price could revisit the previous high of $73,777 before the end of the bull run for the ongoing market cycle.
When the meme season truly ends, that’s usually when realisation kicks in that $BTC top or local top is definitely in
— Bull Run ₿lackmore (@21blacky) April 30, 2024
Far to late, but it’s always the same, meme season ending is very bearish, it’s the final gasp of liquidity being drained from the market of pure desperation…
Dogecoin offers sidelined traders another entry
Dogecoin (DOGE) price has been in a downward trend since March 28, consistently forming lower lows and lower highs. The meme coin’s high momentum break towards the lower boundary of the Donchian channel marks entry points for sidelined buyers.
Donchian channel is a technical indicator used to identify an asset’s breakout and allow traders to take long or short bets.
DOGE price breakout toward the 20-day low, the lower boundary of the channel, revealed three new entry points for traders. $0.1584 (April 12 low), $0.1435 (April 14 low) and $0.1303 (April 13 low) are the three points for new traders to open a DOGE buy position.
Dogecoin is likely headed towards the upper boundary or the 20-day high (marked by the upper boundary of the Donchian channel), and this is confirmed by Connors RSI, a momentum oscillator that helps identify overbought and oversold conditions for an asset, applicable in shorter time frames.
CRSI reading of 6.44 means Dogecoin is currently oversold, generating a buy signal for the meme coin.
If traders enter at $0.1435, over 40% gains are expected with a target of $0.2035. On entering a buy trade at $0.1303, over 55% gains are expected with the $0.2035 target.
DOGE/USDT 1-day chart
A daily candlestick close above $0.1435 (April 14 low) could invalidate the bullish thesis for DOGE. The dog-themed meme coin could plummet towards $0.1303 (April 13 low), lower boundary of the Donchian channel.
Shiba Inu bears take charge
Shiba Inu (SHIB) price is bleeding, with the April 13 low at $0.00001830 likely being the bearish target for the meme coin in its downward trend. The downtrend is confirmed with the crossover of the signal line above the Fisher Transform, on April 25. The Fisher Transform highlights when prices have moved to an extreme and helps traders identify turning points in the price of assets.
A crossover of the signal line above the Transform is considered bearish for the asset’s price. The Chaikin Money Flow (CMF) indicator is used to assess the flow of capital in or out of an asset. CMF helps confirm the strength of an asset’s price trend. While CMF values above 0 indicate buying pressure, the decline in CMF alongside SHIB price in the past seven days signals the dwindling demand among market participants.
SHIB/USDT 1-day chart
A daily candlestick close above $0.00002476 (23.6% Fibonacci retracement of the decline between March 5 top of $0.00004567 and April 13 bottom of $0.00001830) could invalidate the bearish thesis.
SHIB price faces resistance at the April 21 top of $0.00002820, in its uptrend.
Bonk uptrend supported with positive momentum
Solana-based meme coin Bonk (BONK) eyes 11.5% gains to $0.000025 (38.2% Fibonacci retracement of the decline from May 4 top of $0.000048 to April 13 low of $0.000012). Relative Strength Index (RSI), a momentum indicator, reads 52.28, relatively close to the neutral zone.
The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars above the neutral line, combined with a MACD crossover above the signal line. This is typically considered a bullish sign for the asset. The crossover occurred on April 21. BONK price added nearly 20% to its value since the crossover.
$0.000020 is the immediate support, coinciding with the 23.6% Fibonacci retracement level.
BONK/USDT 1-day chart
A daily candlestick close below $0.000020 could invalidate the bullish thesis. BONK could sweep liquidity at the April 21 low of $0.000018 in its decline.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
