Date: Fri, Nov 15, 2024, 06:14 AM GMT
The memecoin trend in the cryptocurrency market is in full swing, with analysts speculating on the potential for a memecoin supercycle. This anticipation has been strengthened by recent listings on major exchanges, including Coinbase, which recently added Pepe (PEPE) and Dogwifhat (WIF) on November 13. This led to substantial initial gains for both tokens, with PEPE experiencing a 75% jump and WIF a 45% increase.
However, both coins have since retraced, with PEPE and WIF each declining by over 15% in the past 24 hours. This correction raises questions about the potential for a bounce back, especially as both charts approach critical technical levels.
Will They Bounce Back?
Let’s look into the technical analysis of PEPE and WIF to examine their chances of recovery.
Pepe (PEPE)
After its initial 75% surge, PEPE has pulled back, forming a descending triangle on the 30-minute chart. This formation includes a prominent downtrend resistance line, which PEPE has repeatedly tested but has not yet broken through. The price is currently testing the lower support near $0.00001835. To signal a potential reversal, PEPE needs to break above this downtrend resistance line (R).
If PEPE can break and close above this descending resistance, it could indicate a move towards the $0.00002339 range, where stronger resistance lies. The 30-minute Relative Strength Index (RSI) sits at around 37, suggesting that PEPE may be nearing oversold territory and could be due for a relief rally. However, failure to break the downtrend resistance could lead to further downside, with the support level around $0.00001835.
In summary, a break above the downtrend resistance is crucial for PEPE’s bullish potential. If the resistance holds, the coin may face continued bearish pressure.
Dogwifhat (WIF)
WIF also saw a significant initial pump of 45% but has since entered a correction phase. On the 30-minute chart, WIF is hovering above the support (S) of around $3.30, with trendline resistance (R) at approximately $3.60. This trendline resistance serves as a key pivot point; a breakout above this level could signal a reversal and potential rally.
The RSI for WIF is around 34, indicating oversold conditions, which may attract buyers at the current level. If WIF can break above the $3.60 trendline resistance, it could initiate a move toward the $4.11–$4.20 range. However, a failure to break this resistance could result in further downside, with the next major support at $2.94.
To sum up, WIF needs to reclaim the trendline resistance (R) at 3.60 for a possible bullish reversal. If not, it risks further declines.
Conclusion
Both PEPE and WIF are approaching crucial resistance levels after their post-listing corrections. For PEPE, breaking the downtrend resistance trendline is key, while for WIF, reclaiming the $3.60 trendline resistance (R) is essential. The oversold RSI levels for both coins provide some hope for a bounce, but traders should be cautious and wait for confirmation of these breakouts.
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