It can safely be said that the memecoins are entirely at the mercy of market sentiment, and this is in the toilet right now. If things do not turn around, and this is not looking likely in the current global trade war environment, the memecoins could head to zero a lot quicker than some expect.
When the market is confident, and Bitcoin is sailing high, memecoins have proven to be excellent trades, with some outperforming the king of the cryptocurrencies by quite some distance over short periods of time.
However, we are in the complete inverse of this state of affairs currently. If $BTC is going to be sold off because it is the only available liquid asset at weekends and during after hours trading, then only those who have a particularly bullish future outlook are going to buy or hold memecoins.
In fact, some of the top memecoins still have big market caps, which could be trimmed a whole lot more. For example, Dogecoin is in eighth position according to the Crypto Daily Price Index, with a market cap of $25 billion.
$DOGE rally needs to start now
Source: TradingView
The $DOGE price is up 3% so far on Wednesday, but as can be seen in the above weekly chart, this is a drop in the bucket compared with how far the $DOGE bulls need to push the price back up in order to get above the last swing high (another 232% higher).
That said, looking at the chart from a positive aspect, the bulls are still helping the price to cling to the $0.147 horizontal support. It can be seen that there are horizontal support levels all the way down to $0.095.
However, a rally needs to start now. Either the bull market is over, and the bleed out will go a lot further down, or the next rally must be strong enough to push through the descending trendline and start taking out the above resistance levels.
$SHIB in dire predicament
Source: TradingView
The $SHIB price is in a dire predicament. Almost at the very base line of support, if this level fails, a move to zero could be a very unpalatable reality for those still holding.
The Stochastic RSI has turned back down, signalling that there is still no upside price momentum. Some kind of strong market catalyst is needed in order to save $SHIB.
$PEPE facing a rapid 33% further drop
Source: TradingView
The $PEPE price is in a similar predicament. In the absolute last chance saloon, the bulls have to defend the current support level with everything they have. If the price falls through this horizontal level, a rapid 33% dip to the next support level could take place.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.