The recent surge in popularity of the new cryptocurrency PEPE has reignited investor interest in Memecoins, as they recognize their potential to provide substantial returns on investment. With higher possibilities of these popular crypto categories getting back on the recovery cycle, it is essential to analyze their price behavior to find long entry opportunities.
PEPE’s price notably recovered this month, reaching an All-Time High of $0.00000449. However, after such massive growth, it is common for this memecoin to witness a correction and stabilize the rising selling pressure. The PEPE price tumbled 43% from the ATH, reaching the crucial support of the 50% Fibonacci retracement level. The 4-hour time frame chart shows several lower price rejection candles at this support, indicating buyers are accumulating at this level. If buyers manage to sustain above this level, the coin price may resume its bullish recovery and rise 76% higher, rechallenging the ATH barrier.
In contrast, the Floki price has started to bend upwards, showing the formation of new higher highs and higher lows. This new wave formation indicates the DOW theory, hinting at a change in the price trend. The FLOKI price now trades at $0.0000385 and is currently witnessing a correction phase following the massive rally on May 5th. The bearish pullback is trying to find support at the 61.8% FIB level and may encourage buyers to recuperate the bullish momentum. If the buying pressure persists, a reversal from the aforementioned level will create a new higher low, boosting the bullish rally 50% higher to hit the last swing high of $0.0000579.
On the other hand, the Shiba Inu price spent two months in a sideways trend between $0.0000117 and $0.00000968 levels, ultimately breaching the lower support as a signal of downtrend resumption. On May 6th, the coin price experienced a decisive breakdown from the $0.00000968 support, flipping it into a suitable resistance. In the coming days, the coin price may retest this breached level to check price sustainability at lower levels and offer a short-selling opportunity to traders. The potential downfall may cause the SHIB price to tumble 16-18% down, hitting the December 2022 bottom support of $0.00000789.
While Memecoins hold the potential for substantial returns, it is crucial for investors to conduct thorough market research before investing, as the presented content includes the personal opinion of the author and is subject to market conditions. The author or the publication does not hold any responsibility for an individual’s personal financial loss.
Source: Coingape
