With Bitcoin currently under some major selling stress, and threatening to break down under the $60,000 support, now could be a good time to start picking up some memecoin bargains as most investors are potentially looking to sell. $WIF, $BRETT, and $BONK are all at, or near, good buy zones.
Keep an eye on $BTC
Before buying any memecoins, or probably any other cryptocurrency, it must be borne in mind that there needs to be some positive sentiment around Bitcoin, the king of the cryptocurrencies. If $BTC is trending downwards, the rest of the crypto market will likely be doing the same, but in spades. Therefore, keeping one eye on $BTC is always a major factor before trading in and out of memecoins.
The three memecoins that are being analysed in this article are the 3 best-performing cryptocurrencies over the past year. Dog Wif Hat ($WIF), up 29,550%, $BRETT 15,221%, and $BONK 3,206%. No other cryptocurrencies come close.
$WIF hitting a bottom?
Source: TradingView
So $WIF is the undisputed king of the outperformers for the last 12 months. Currently the $WIF price is potentially hitting a bottom. $1.94 is that support level, and it might be expected that $WIF bounces from here. $1.49 would be the last line in the sand should $WIF lose this level.
$BRETT respects upward sloping trend line
Source: TradingView
$BRETT has been respecting its upward sloping trend line since mid-May. Below this line there is a support band that stretches from $0.14 down to the 0.382 fibonacci level at $0.13. Other than that, $BRETT is in a range spanning $0.14 up to $0.165. It could also be said that the $BRETT price is in an ascending triangle bounded by the top resistance and the trend line - a rather bullish pattern.
$BONK battles at support
Source: TradingView
$BONK looks to be a slightly slower horse than the other two. That said, it is in an uptrend, and has recently made a higher low. It can be seen in the chart above that the price is currently battling to stay above the combination of the 0.618 fibonacci and the support level of $0.000021. $0.0000177 is probably the last possible line to buy at, as the 0.786 fibonacci level would see a lower low.
Utmost caution advised
The utmost caution would be advised if taking any of these trades. If $BTC were to suddenly plummet and lose the $60,000 level, and God forbid, $58,000, memecoins would go down like lead balloons. Stop losses and all proper risk management should be employed.
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.
