Spring has brought hope for the recovery of the memecoin market. Cat in a Dogs World (MEW) and Bonk (BONK) are showing potentially bullish trends despite a challenging start to the year.
MEW: Bullish Breakout and Strong Momentum
MEW has successfully broken out of a falling wedge pattern, often signaling a trend reversal. The breakout occurred mid-March around the $0.0018 level. Since then, the token has gained over 90%, reaching a resistance zone near $0.0033 while maintaining strong support above its 50-day moving average. If it can break above this resistance, the next target is around the 100-day moving average and $0.0046 price zone. The MACD indicator has also confirmed a bullish crossover, indicating increasing momentum in favor of buyers.
BONK: Following MEW’s Footsteps?
BONK has been mirroring MEW’s price action, remaining in a falling wedge pattern since November. The token recently rebounded from a low of $0.0000088 on March 11. Currently, BONK has reached $0.000012 and is approaching a critical resistance level at the upper boundary of the wedge and the 50-day moving average. A breakout and hold above these levels would target $0.0000197, followed by the 100-day moving average around $0.0000248, marking a potential 66% increase from its current price. The MACD indicator is showing early signs of a bullish crossover, suggesting upward momentum is building. However, a confirmed breakout is needed for BONK to mirror MEW’s recent surge.
Final Thoughts: Can BONK Follow MEW’s Lead?
MEW’s breakout has reignited interest in memecoins, and BONK appears poised for a similar breakout. If it follows this pattern, significant upside is anticipated. Traders should closely monitor MEW’s ability to remain above $0.0033 and BONK’s potential breakout above its descending wedge resistance. With bullish sentiment returning, the second quarter could offer strong recovery prospects for memecoins. Investors should remain cautious and conduct thorough research before making decisions.
The memecoin market might be on the verge of recovery, with MEW's strong performance and BONK's potential upswing. However, caution and detailed analysis are crucial to navigate sudden shifts in dynamics.
