- CoinMarketCap, a cryptocurrency data tracker, reported 138 new meme currencies in April, but there might have been more.
- Diversification is crucial when investing in meme currencies, according to analyst Crypto Koryo.
- The price of DOGE has increased by 12%, but SHIB and BONK have completely reversed their seven-day gains.
138 new meme currencies were added to CoinMarketCap in April. The real figure might be far higher because, according to analyst Crypto Koryo, CoinMarketCap only covers 10% of all tokens.
Amidst a surge in demand for meme coins, Dogecoin (DOGE) sustains nearly 12% gains over the past seven days, while Shiba Inu (SHIB) and Bonk (BONK) wiped out gains.
The 1-day DOGE/USDT chart shows that Dogecoin has been trading in a range between $0.17449 and $0.12010 since mid-April. As of this writing, the largest meme coin by market capitalization is up 12.38% over the last seven days, trading at $0.14757 on Binance.
The DOGE price recovery theory is corroborated by the momentum oscillator known as the Moving Average Convergence Divergence, or MACD. Bullish indicators for Dogecoin include the green histogram bars above the neutral line and the MACD crossing above the signal line.
DOGE encounters resistance around $0.16165 and $0.17449, the 61.8% and 50% Fibonacci retracement levels of the slide between the top of $0.22888 on March 28 and the low of $0.12010 on May 1st, respectively, in its ascent towards the Fair Value Gap (FVG) between $0.17586 and $0.18974.
Nearly 20% gains from the current level are implied by a move to the conservative objective of $0.17586.
If you were to look lower, DOGE might find support at the lows of $0.11132 on February 29 and $0.12010 on May 1.
At $0.00002251, Shiba Inu might sweep the liquidity
On the SHIB/USDT 1-day chart, Shiba Inu has formed lower highs and lower lows since March 5. At $0.00002251, SHIB has produced a bearish descending triangle pattern, which is defined by a lower horizontal trendline and a lower descending upper trendline.
It is probable that SHIB will sweep liquidity at the $0.00002251 horizontal trendline. If the meme coin continues to drop, it may find support at the low of $0.00002057 from May 1.
Conversely, should the meme coin experience a daily close above the high of $0.00002424 set on May 6, Shiba Inu would encounter resistance at $0.00002476.
Bonk trades in a narrow range, wiping away the previous seven days’ gains
The one-day BONK/USDT chart indicates that the stock is trading in a range, with the 50% Fibonacci retracement level of the rise from the April 13 low of $0.00001212 and the April 25 peak of $0.00002966 serving as the upper and lower boundaries, respectively.
As of Thursday’s writing, BONK is trading at $0.00002320, wiping out all of its gains over the previous seven days.
Red histogram bars beneath the neutral line in BONK’s Moving Average Convergence Divergence indicator indicate negative momentum in the rangebound price movement of BONK. At $0.00001212, the 50% Fibonacci retracement level, BONK might sweep liquidity.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
