As Bitcoin (BTC) continues to traverse sideways, the altcoins are certainly not going to outperform. This is even more so the case with memecoins. $PEPE, $WIF, and $BONK have had stunning price surges this year, but now, it’s a case of just how low can they go?
How great is your risk tolerance?
When it comes to altcoins, and even more so the memecoins, one has to ask the question: how much risk are you prepared to tolerate? Things are great among the memecoins when the whole market is rising, but when it’s going in the opposite direction, those holding memecoins had better be prepared to see blood.
$PEPE sits on strong support
Source: TradingView
For $PEPE, the daily chart is quite clear. The price is currently holding above the 0.786 fibonacci, which is the deepest of these levels. If the price did fall below this, a strong horizontal support level is at $0.00000592.
$WIF breaks down through support
Source: TradingView
The $WIF price is not having the best of times. It has recently broken down underneath the support level at $1.49, and has now flipped this into resistance. The price appears to be following a downward-sloping channel structure, and should the slide continue, the 0.786 fibonacci is support at $1.10, and the bottom of the channel, below this, is where a bounce could occur.
If things did go badly for the crypto market, there is some slight support at $0.83, but after that, there is the possibility that the $WIF price could fall all the way down to the horizontal support at $0.43.
$BONK breaks price structures to the downside
Source: TradingView
The $BONK price is breaking some structures. The price has fallen below the 0.786 fibonacci, and it has broken down below its upward trend. If the $BONK price continues downward and breaks the horizontal support at $0.0000162, confirming this as resistance, this could augur a much worse price fall.
A lower low at $0.0000121 would probably surpass the absolute last line in the sand.
If $BTC turns around, memecoins will surge
These are all negative case scenarios for the above memecoins. Can these take place? Yes, of course. However, everything depends on the price of $BTC. If Bitcoin finally decides to break out of this long period of sideways consolidation, you can probably count on these three memecoins to surge upwards and out of their current pessimistic predicaments.
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.
