Date: Tue, Dec 31, 2024, 09:39 AM GMT
The cryptocurrency market has been under pressure over the last two weeks, with Bitcoin (BTC) retreating from its all-time high of $108K to its current price of $93K. This correction has also affected top memecoins, including Shiba Inu (SHIB) and Bonk (BONK), which have both experienced an average decline of 30% over the past month.
Amid this, both coins are now nearing critical breakout levels that could mark the beginning of significant upward moves.
Shiba Inu (SHIB):
Shiba Inu (SHIB) is currently trading at $0.0000212 and approaching a major resistance level at the upper boundary of a falling wedge pattern. This pattern, which has been forming over the last several weeks, is often a precursor to a bullish breakout.
The Relative Strength Index (RSI) is hovering near oversold levels at 37.65, signaling that selling pressure may be easing. Meanwhile, the Moving Average Convergence Divergence (MACD) is showing signs of a potential bullish crossover, as bearish momentum gradually fades.
If SHIB can break above the wedge’s resistance at $0.0000226, it could trigger a significant rally, with the next major target at $0.0000334. This would represent a gain of 56% from current price levels. However, failure to break out of the wedge could result in a retest of lower support at $0.000020, which may present an opportunity for accumulation.
Bonk (BONK):
Similarly, Bonk (BONK) is also showing signs of an impending breakout as it approaches the upper resistance of its falling wedge formation. Trading at $0.00003141, BONK has been consolidating for weeks but now appears to be building momentum.
The RSI for BONK is at 43.88, suggesting that there is room for upward movement if buyers step in. The MACD indicator also reflects a waning bearish trend, with the potential for a shift in momentum.
A successful breakout for BONK could pave the way for a rally toward $0.000040 and even $0.000049, marking potential gains of up to 54%. On the other hand, failure to surpass the resistance could lead to a pullback to the lower support level at $0.00002950.
Conclusion:
Both Shiba Inu and Bonk are at critical inflection points, with the potential for significant upward movements if they break out of their respective falling wedge patterns. The broader cryptocurrency market’s stabilization and improving sentiment provide a supportive backdrop for these memecoins.
However, traders should remain cautious and wait for clear breakout confirmations before making any decisions. Failure to break these key levels could lead to temporary declines, offering opportunities for long-term investors to accumulate at lower prices.
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