Following a week of losses, the meme coin market has witnessed a notable rebound.
The values of leading meme coins Shiba Inu (SHIB) and Bonk (BONK) have risen by double digits in the past seven days. However, the Solana-based meme coin Dogwifhat (WIF) has bucked the trend as it recorded a decline during the same period.
Shiba Inu (SHIB) Climbs By Double Digits, Trends Toward Key Moving Average
The price per Shiba Inu (SHIB) coin has risen by 17% during the week in review. As of this writing, the meme coin trades at $0.000015.
Assessed on a one-day chart, the coin’s price is poised to cross above its 20-day exponential moving average (EMA).
This moving average assesses an asset’s short-term trends and identifies potential entry and exit points. It measures an asset’s average trading price over the past 20 days.
When an asset’s price is about to cross this key moving average, it is a bullish signal. In SHIB’s case, it has traded below the 20-day EMA since June 7. Therefore, the move to rally above it is significant because it indicates a shift in momentum towards buying and potentially higher prices.
If this happens, the coin’s value will rise to exchange hands above the $0.000016 price.
Read More: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
However, if profit-taking commences, the coin’s price might witness a downtrend and fall under $0.000015.
Bonk’s (BONK) Current Uptrend is Strong
At press time, BONK trades at $0.000022. During the week in review, its price has climbed by 14%.
Confirming the strength of the current uptrend, BONK’s Aroon Up Line is at 92.86%. An asset’s Aroon indicator measures its trend strength and identifies potential price reversal points. When the Aroon Up Line is close to 100, it indicates that the uptrend is strong and that the most recent high was reached relatively recently.
Further, the token’s positive Chaikin Money Flow (CMF) shows liquidity inflow into the BONK market. This is needed to sustain its current price rally.
An asset’s CMF indicator measures money flow into and out of its market. When its value is above zero, it signals market strength, as asset holders supply the capital to help sustain the price growth. At press time, BONK’s CMF is 0.02.
If the meme coin continues to enjoy liquidity inflow and demand remains high, its price may rally to $0.000023.
Read More: 11 Top Solana Meme Coins to Watch in July 2024
However, if the current trend is reversed and sentiment shifts from positive to negative, the token’s value will drop to $0.000021.
Dogwifhat (WIF) is the Odd One Out
Out of the top five meme coins by market capitalization, Dogwifhat (WIF) is the only one that has recorded a price decline in the week under review. Trading at $1.56 at press time, the price of the dog-themed token has dropped 4% in the last week.
Readings from WIF’s Parabolic Stop and Reverse (SAR) indicator suggest that the price decline might extend into the weekend. This indicates that the bearish sentiments trailing the meme coin remain significant.
The indicator’s dots rest above their price at press time, indicating that the market is in decline and might continue.
The Parabolic SAR indicator is used to identify potential trend direction and reversals. When its dotted lines are placed above an asset’s price, selling pressure is high.
If this trend continues, WIF’s price will drop to $1.50.
Disclaimer
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