Memecoin Watch: BONK Nears Key Resistance – Potential Breakout? PEPE’s Pattern Signals Uptrend
Cryptocurrency markets are continuously shifting, and memecoins often represent the most volatile and intriguing segment. Stoic, a notable cryptocurrency analyst on X, has shared his technical evaluations of two such coins, BONK and PEPE, providing insights that might help predict their near-term movements.
What you'll learn 👉
Technical Perspective on BONK
In his detailed analysis of the BONKUSDT trading pair, Stoic focuses on a 4-hour chart where BONK shows signs of testing critical technical levels. The coin is currently holding above the yearly volume-weighted average price (yvwap), a positive sign for supporters.
However, BONK faces a formidable challenge at the point of control, a resistance level that could dictate the future direction of its price movement. A break above this level could signal a strong bullish momentum, whereas failure to surpass could see the coin retreating to lower supports.
In addition to the resistance near the .35 mark, Stoic advises traders to monitor BONK’s ability to sustain support above the lower value area (VAL) of its trading range. The stability of BONK above this level could affirm the coin’s strength, potentially making it an attractive opportunity for buyers looking for an entry point before a possible price ascent.
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Show more +Insights into PEPE’s Market Behavior
Shifting the focus to PEPE, Stoic identifies a potentially bullish “cup and handle” formation on the 4-hour chart, indicative of a possible upcoming price increase. This pattern is noteworthy because it typically signals a continuation of an uptrend after a brief consolidation. The handle portion of the formation, currently forming, represents a slight downward drift, which should ideally conclude with an upward breakout as the pattern completes.
Stoic highlights the importance of the 2-month range’s point of control (PoC) for PEPE, suggesting that a flip of this level accompanied by sustained momentum could lead to significant price action. Traders should be cautious of an initial rejection at this critical volume level but recognize that reclaiming it could propel PEPE to higher valuations. Accordingly, strategic entries and stop-loss placements just below the handle can manage risks while capitalizing on the potential uptrend.
Both BONK and PEPE present opportunities within the memecoin market, each at pivotal points according to Stoic’s technical analysis. For BONK, the key is breaking and holding above its current resistance, while for PEPE, completing the cup and handle pattern could mean a bullish future.
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