For those who believe in a continuance of the crypto bull market, and specifically as it pertains to memecoins, some of the crowd favourites (DOGE), (PEPE), and (BONK), are down at major support levels. Is now the time to buy?
DOJ potential BTC sell-off sparks deeper dip
The Bitcoin (BTC) bull market is under threat right now. The market had been coming down from levels just above $100,000 when recent news of a potential sale of around $6.5 billion in BTC by the U.S. DOJ sparked a deeper sell-off.
Market indicators starting to bottom
Downward trending markets are not the best time for buying crypto, and certainly not cryptocurrencies that are even further along the risk curve, such as memecoins. That said, market indicators are starting to bottom, and a bounce could be likely in the near future. For those looking for potentially higher-than-usual gains, it could be time to buy some of the popular memecoins.
$DOGE coming down to major support levels
Source: TradingView
$DOGE is coming down to major horizontal support levels. First at $0.31, and then at $0.28. The second of these levels may also coincide with the rising trendline as seen on the above chart. The trend is still up for $DOGE, and healthy retracements of 35% and 42% respectively could be great levels to start buying a position in what is arguably the most popular of all the memecoins.
$PEPE at its bull market base level
Source: TradingView
$PEPE is currently sitting at the big horizontal support level that arguably defines the rest of its bull market. Up to now, the price has been building market structure above this level, and it has held beautifully, with the good possibility that it could become the bull market base for $PEPE.
That said, if the price does fall through this level, with confirmation below, the next support is down at $0.00001324, with further levels below this as marked on the above chart.
A buy-in at the current level should be protected by a tight stop loss. Fortune favours the brave.
A good place to start building a $BONK position?
Source: TradingView
$BONK is currently at a very good horizontal level of support, with a retest of the descending trendline having also just been made. This looks like a good level to start building a position, with some lower levels as per the chart below. If the price were to fall below the lowest of these, and also below the bull market trendline, that would potentially be the end of the $BONK upward trend.
At the bottom of the chart, the Stochastic RSI is coming down. This could either continue to come down to the bottom, or it could bounce at the 20.00 level, as it has done before. The two indicator lines will need to cross back up in order for major momentum to start buoying the price upward. Watch this indicator closely.
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.
