YEREVAN (CoinChapter.com) – Largest meme coins by market cap, Dogecoin (DOGE), Shiba Inu (SHIB), and Dogelon Mars (ELON) held above significant support lines after counting double-digit value losses month-to-date. Meanwhile, some were primed for an uptrend in the coming quarter. Thus, an individual analysis could answer more questions about where the coins are headed.
Dogecoin in a bullish setup
The alpha of the meme-coin pack, Dogecoin, saw its token DOGE decline 35% month-to-date and traded at $0.086 in Tuesday’s London session. However, the technicals favored the DOGE bulls, as the token has been trading in a formation dubbed the Falling Wedge since mid-August 2021.
The latter entails two down-sloping trendlines that enclose the price action and prevent sharp moves in either direction. The setup forecasts a bullish move after DOGE breaks the resistance trendline. However, before the uptrend occurs, traders can expect consecutive resistance and support retests.
Dogecoin token retested the support on May 27, then rebounded 13%, with encouragement from Bitcoin recovery. However, considering the trading volume decline in the previous three days, the rally will not be sustainable. Instead, a 20% drop back to the support trendline is likely.
But, if the Falling wedge remains relative, it could triple the DOGE value in Q3-Q4 2022.
Shiba Inu eyes a 40% drop.
Shiba Inu, the most prominent Dogecoin successor, had a rough month and lost over 43% in value since May 1. As a result, the SHIB/USD exchange rate stood at $0.00001179 on Tuesday, after a moderate 15% uptrend in the previous three days. However, much like DOGE, SHIB’s upside move appeared to be a bull trap, considering the lowering trading volumes.
Furthermore, as traders pull a bank run, SHIB could face another 40% drop based on the Falling Channel setup. Unlike Dogecoin’s Falling Wedge, the Channel does not predict a bias after exhaustion. However, it can be instrumental in determining short-term sentiment.
According to the formation, the Shiba Inu token is primed for another support retest. It targets the SHIB price at approximately 0.0000071, fulfilling the 40% drop prediction.
Dogelon Mars mimics older brothers.
The love child of Elon Musk and the meme coin industry, Dogelon Mars, painted a similar picture to Shiba Inu in the previous month. As a result, its token ELON lost 47% since May 1, as the coin traded at $0.000000476 in Tuesday’s London session.
Furthermore, the token traded in unison with Shiba Inu and formed a similar Falling Channel on the daily chart. However, its target decline was not as dramatic and stood at 24%.
If the pattern plays out, the target price for ELON in Q3/2022 would stand at approximately $0.000000362.
The mentioned meme coins shaved double digits off their value during May, following Bitcoin’s lead. While Dogecoin flashed hopeful technicals for the DOGE bulls, Shiba Inu and Dogelon Mars made no such promise.
However, despite their individual technicals, meme coins tend to respond to the hype on the crypto market and follow Bitcoin’s lead. Thus, if the global economic conditions and the equity market turn their bullish side to the alpha crypto, meme coins are likely to jump on the bandwagon. Conversely, if the BTC/USD exchange rate eyes further declines, so will Dogecoin, Shiba Inu, and Dogelon Mars.