DOGE, SHIB and BONK Likely to Undergo a Correction Soon

The collective market cap for meme coins increased more than 4% over the past 24 hours, according to CoinMarketCap. This boosted the total valuation for the meme coin market to above $24.128 billion at press time.

Throughout the past day of trading, Shiba Inu (SHIB) saw its price rise 8.82%. Meanwhile, Dogecoin (DOGE) and Bonk (BONK) saw their prices drop 0.02% and 12.82% respectively.

Daily chart for SHIB/USDT (Source: TradingView)

SHIB managed to break above the major resistance level at $0.00001055 over the past 24 hours. Since closing yesterday’s trading session off at $0.00001160, the meme coin has recorded a 6.72% drop in price.

If SHIB is able to remain above the recently-breached $0.000001055 mark, then it may have the foundation needed to continue rising in the next few days. This could lead to the cryptocurrency attempting a challenge at the subsequent barrier at $0.00001250 in the short term.

On the other hand, a break below the $0.00001055 support may put SHIB at risk of retesting the $0.00000925 level. In an extremely bearish scenario, SHIB could fall to as low as $0.00000847.

Technical indicators on SHIB’s daily chart were contradicting each other. The Moving Average Convergence (MACD) suggested that the cryptocurrency’s price would continue rising in the next few days. Meanwhile, the Relative Strength Index (RSI) line broke below the RSI Simple Moving Average (SMA) line in the last 48 hours, signaling that buyers had exited SHIB’s charts.

Daily chart for DOGE/USDT (Source: TradingView)

DOGE has been in a consolidation phase between $0.08965 and $0.10735 for the last week. Traders and investors will want to note that the meme coin’s price was resting on the lower level of this range. As a result, DOGE may be at risk of falling below this channel if buyers do not step in soon.

Should DOGE break below $0.08965 in the next few days, it could drop to as low as $0.07755. This bearish thesis may be invalidated if DOGE maintains a position above $0.08965. In this more bullish scenario, the cryptocurrency could look to challenge the $0.10735 barrier.

Technical indicators on DOGE’s daily chart suggested that a bearish scenario is more likely to play out in the coming week. Both the MACD and the RSI were flagging bearish.

The MACD line was breaking away below the MACD Signal line, while the RSI line was breaking away below the RSI SMA line. These technical flags may indicate that sellers have the upper hand against buyers and may attempt to drive the meme coin’s price down further in the next 48 hours.

Daily for BONK/USDT (Source: TradingView)

BONK was rejected by the upper level of an ascending price channel that had formed on its chart over the past few weeks. This rejection led to the meme coin entering into a multi-day negative sequence. Should this bearish momentum continue, BONK may fall to $0.0000149068 in the coming few days.

This will be a critical level to watch as it is also confluent with the lower barrier of the positive price channel. Subsequently, a break below this mark could see BONK’s positive streak come to an end, and the meme coin may test the $0.0000089940. Continued sell pressure could lead to BONK falling to as low as $0.0000046040.

Traders and investors will want to be aware of the fact that the RSI line crossed below the RSI SMA line over the past 48 hours. This was after the meme coin stayed in overbought territory for several days.As a result, this technical flag may be an early sign of a BONK selloff.

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