The better performing altcoins have lost between 20-30% during this downturn so far. However, in the memecoin space things are much worse, with losses up to 40-60%. $DOGE, $PEPE, and $BONK are analyzed for recovery.
For the altcoin investor things have been pretty grim over the past few weeks. With Bitcoin ($BTC) struggling to reverse, the altcoins have become worse as usual. However, for those sitting in memecoin positions, the stress of seeing a drop of at least 40% over the past two weeks must be hard to bear.
Clear support and kick for $ DOGE
Source: TradingView
The weekly chart for $DOGE (DOGE/USDT) shows a very clear picture. It can be seen that the dramatic rise from $0.08 in early August reached the 0.618 Fibonacci at $0.47 in November.
Such a large price increase needed a correction, so over the past two weeks a 43% drop did a lot to help the market absorb the previous increase. The fact that this decline went down to touch an upward trend line that started at the end of 2022 is very positive.
The $DOGE price is currently sitting on strong horizontal support which coincides with the 0.382 Fibonacci. Target levels are upside down in the chart above.
$PEPE bolstered by strong horizontal support
Source: TradingView
$PEPE (PEPE/USDT) has seen a lot of volatility in the past few weeks. A textbook bull flag broke and the price seemed to be on the upswing. However, the resulting dump took the price all the way back to touch and confirm the bottom of the flag. This resulted in a 49% conversion from the top.
Currently, the price is starting to climb from the strong horizontal support at $0.000017. If the $PEPE price can climb back out of the flag, then bulls would need to watch for a future head and shoulders reversal pattern. If this can be avoided, the all-time high at $0.000028 would be a great target.
$BONK bulls need to break the downtrend line
Source: TradingView
$BONK (BONK/USDT) has suffered worse than most among the major memecoins. A 60% reversal from the all-time high at $0.000062 has occurred and it is now up to these bulls to buy the price up so they can break out of the downtrend.
This is very likely to happen, as the correction has already been very steep. If so, the targets are in the chart above. On the other hand, if the breakout continues, the ascending bull market support line may be the last support line.
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.
Source: https://cryptodaily.co.uk/2024/12/major-memecoins-drop-40-60-during-downturn-what-next-for-dogecoin-doge-pepe-pepe-and-bonk-bonk
