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Will These Top Meme Coins Perform in May?
The crypto market has witnessed a gradual decline over the last three days. Bitcoin fell 5% and bulls lost $350 million in market-wide long liquidations. Amid the crisis, meme coins suffered the same fate and experienced increased supply pressure.
Despite industry leaders Dogecoin and Shiba Inu recording an average drop of 10%, the bullish sun finally shines on them. With an intraday rally raising hopes of a trend reversal, will these top meme coins perform in May?
Will new and trendy meme coins like BONK, PEPE or Floki jump higher? Most importantly, are these the best new meme coins to buy and invest in 2024? Let’s take a look at our in-depth price analysis and find out if meme coins are worth buying this month.
Meme Coin DOGE’s Highest Performance Under Scrutiny
With a market cap of nearly $21.5 billion, Dogecoin ranks as the 8th largest cryptocurrency in the world. The meme coin’s trading volume is nearly $1.15 billion, but DOGE’s price struggles to rise. With a pullback phase underway, it registered a drop of 25% in 30 days.
The retracement phase forms a descending channel pattern on the daily chart, and the solid resistance trendline leads to the third reversal. This undermines the breakout of the secondary resistance trendline and tests the $0.14 mark.
With three days of bearishness, the meme coin completes a bearish triple crow pattern at a crucial resistance zone. Therefore, price developments in the short and medium term reflect an increase in supply pressure.
However, a bullish return from the trend-based Fibonacci level of 38.20% could instantly reverse sentiments. A sudden rally will potentially push DOGE price higher towards the $0.2290 mark.
On the other hand, the $0.1226 demand zone is a critical support known for multiple contact reversals in recent times.
Canal collapse traps Shiba Inu
As the second-largest meme coin in the crypto industry, Shiba Inu ranks 11th in the broader market with a market cap of nearly $13.5 billion. However, the bearish impact of Bitcoin’s poor performance led to a downward trend in the price of SHIB.
The meme coin declines under a descending channel pattern as buying pressure decreases. Currently, SHIB price is moving sideways as the $0.000020 level becomes a strong bullish.
With the bullish divergence in the RSI line reinforcing the possibility of an uptrend, Shiba Inu is at a crossroads. According to trend-based Fibonacci levels, the channel rally will increase SHIB price to $0.000041.
Conversely, a drop below $0.000020 will test the trendline support near $0.000018.
Post-retest bounce for PEPE Meme Coin
As one of the only major meme coins without a dog theme, PEPE becomes the whales’ top choice with a market cap of nearly $3.5 billion. Despite the 9% pullback earlier this week, price action reflects a high probability of reversal and upside.
With the recovery of the bearish wedge leading to the breakout of the inverted head and shoulders pattern, the underlying demand for PEPE is increasing. The recent pullback comes as a retest of the broken neckline at $0.0000078, near the 50% Fibonacci level.
With intraday growth of 4.77% and a morning star pattern on the 1D chart, the meme coin is poised for a post-retest bounce. According to the Fibonacci retracement of the pullback phase, the uptrend may reach the $0.000014 mark if it recovers the $0.000010 mark.
FLOKI sees 65% increase with this new test
With the recent bullish return, FLOKI reminds the market that it is not just another dog-themed meme coin. With a market cap of US$1.668 billion, the FLOKI coin price records a year-to-date gain of 420%.
Furthermore, the recent price action on the 4-hour chart shows a retest phase of a moving resistance trendline breakout. The retraction is responsible for a drop of almost 12% in four days. However, intraday growth of 4.29% triggers a bullish turnaround on the 4H chart and a morning star pattern on the 1D chart.
With higher chances of a bullish return, the MACD and signal lines provide a bullish crossover. If the trend dynamics continues, FLOKI price could reach $0.00030.
Double Bottom Reversal for BONK
As the top meme coin in the Solana ecosystem, BONK is a rising name in the meme coin industry. With a market capitalization of $1.544 billion, BONK price is preparing for a double bottom reversal to extend the uptrend.
With a bullish breakout of a descending wedge, the meme coin floats at the 50% Fibonacci level. Furthermore, the 38.20% and 61.80% Fib levels act as limits on both sides. Hence, a breakout on either side will determine the future price trend.
However, the failed double top, leading to high anticipation of a double bottom reversal, triggers an uptrend. A bullish breakout could lift BONK price to $0.00003786.