Market data reveals divergent trends for meme coins BONK and dogwifhat (WIF), reflecting the nature of the crypto sector. While BONK shows potential for gains, WIF faces possible downward pressure after a recent price increase.
These developments come as analysts closely monitor the broader meme coin market for signs of movement.
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BONK’s Potential Gains and Technical Analysis
Analyst Decilizer commented on BONK’s performance, stating, “BONK is once again leading the way, and can trim 1 zero if this trend continues!” The analyst noted BONK’s previous 34x gains in the last rally, suggesting potential for further growth.
However, a technical analysis by altFINs offers a more conservative outlook for BONK. Their report indicates that BONK’s price recently dipped below its 200-day moving average and the $0.000020 support level, potentially signaling a downtrend.
AltFINs’ analysis describes BONK’s short-term trend as strongly downward, with a potential revisit to the $0.0000125 level. The firm explains, “Once a price breaks below a support zone, it signals that supply from sellers has overwhelmed demand from buyers at this level.”
Despite the bearish short-term outlook, altFINs notes that BONK’s long-term trend remains upward, while the medium-term trend is downward. This mixed picture suggests possible price fluctuations in the coming period.
For BONK traders, altFINs identified key levels to monitor. The nearest support zone is at $0.00002, followed by $0.0000125. Resistance levels are set at $0.00003 and $0.000037. These levels provide important reference points for potential trading strategies.
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WIF’s “Dead Cat Bounce” and Trading Strategies
Turning to WIF, analyst Zen suggests a potential “dead cat bounce” scenario. This term describes a temporary recovery in a declining market, often followed by continued downward movement.
Zen’s analysis indicates WIF could reach a resistance zone around $1.88. “Still can get to the zone marked yellow with middle around ~1.88 but there I’d start looking for a short again,” Zen stated in a tweet.
Based on this analysis, short-term traders might consider shorting WIF near the $1.88 level, with a stop-loss around $1.95. For those looking to accumulate WIF, Zen suggests a potential buy-back level around $1.44, aligning with an identified support level.
Decilizer’s observations hint at broader market activity, mentioning positive trends for Bitcoin and increased interest in other meme coins like SHIB and PEPE. However, it’s important to note that the memecoin market remains highly speculative and volatile.
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