While the Dogecoin (DOGE) and Shiba Inu (SHIB) price has struggled to maintain their previous gains, Pepe (PEPE) has been on a massive rally over the past two weeks.
This has led to calls for a “Meme coin season” and the possibility that PEPE will join DOGE and SHIB to create a big three of meme coins.
Dogecoin (DOGE) Price Gives Mixed Readings
The technical analysis from the short-term six-hour time frame gives mixed readings for the DOGE price. On the bearish side, the price broke down from an ascending support line on April 21.
This is a sign that the previous upward movement has ended. Additionally, the meme coin trades below the $0.082 resistance area.
On the bullish side, the Dogecoin price has created a triple bottom, which is considered a bullish pattern. The triple bottom leads to upward movements most of the time. This would be confirmed by a breakout above the $0.082 resistance area.
Additionally, the Relative Strength Index (RSI) has generated bullish divergence (green line), supporting the validity of the bullish pattern. A bullish divergence occurs when a momentum decrease does not accompany a price decrease.
Therefore, whether the DOGE price breaks down below $0.078 or breaks out above $0.082 will determine the future trend. The former could lead to a drop towards $0.070, while the latter will likely lead to an increase towards $0.100.
Shiba Inu (SHIB) Price Risks Sharp Fall
The Shiba Inu (SHIB) price broke down from an ascending parallel channel on April 20. This indicated that the previous structure is not valid anymore and a new downward movement has begun.
Currently, the Shiba Inu price is barely holding on to the $0.0000100 horizontal support area. This is the final support level before $0.0000088, which has not been reached since January.
If the SHIB price breaks down, it will likely reach the $0.00000880 support area, a 12% drop from the current price. However, if a bounce transpires, SHIB could test the previous channel’s support line at $0.0000115.
The next 24 hours will likely be crucial in determining which scenario is more plausible.
PEPE Price Leads Meme Coin Rally
PEPE has been the undisputed leader of the unofficial meme coin season, posting gains of 980% over a 12-day period. The increase led to a new all-time high price of $0.00000148 on May 1.
Even though the price is close to the high, the RSI has generated a significant amount of bearish divergence (green line). This means that an increase in momentum does not support the price increase and often leads to sharp downward movements.
If a drop occurs, the closest support area will be at $0.00000081, created by the 0.5 Fib retracement support level. The theory of Fibonacci retracement levels suggests that after a substantial price move in one direction, the price will partially retrace or return to a prior price level before continuing in its original direction.
This principle can also be used to determine the peak of potential future upward movements. With that in mind, the next target for the high will be at $0.00000187 if the increase continues. The target is found by the 1.61 external Fib retracement of the most recent drop.
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