Dogecoin and Pepe prices will retest key support levels on Thursday after falling more than 10% this week. Sideline investors who want to accumulate DOGE and PEPE can avoid support levels. Traders should still remain cautious as both meme coins are showing signs of weakness in their momentum indicators.
Dogecoin (DOGE) and Pepe (PEPE) prices will retest key support levels on Thursday after falling more than 10% this week. Sideline investors looking to accumulate dog- and frog-themed meme coins may consider accumulating at support levels in preparation for a potential recovery rally ahead.
Dogecoin price shows potential for recovery
Dogecoin’s price reached a year-to-date high of $0.48 on December 8, and has since fallen more than 23% in the next 10 days. On Tuesday, DOGE retested its 50-day exponential moving average (EMA) at $0.35. This level roughly coincides with the level of the 61.8% Fibonacci retracement drawn at $0.35 from the November 3rd low of $0.14 to the December 8th high of $0.48, an important reversal zone. It becomes. As of writing on Thursday, it has recovered slightly and is trading around 0.36.
Sideline investors who want to accumulate dog-themed meme coins can trade at levels around $0.35.
If the $0.35 support level holds and DOGE recovers, it could extend the recovery by 13.5% and retest Tuesday's high $0.41.
However, the relative strength index (RSI) on the daily chart has fallen below the neutral level of 50, indicating strong bearish momentum. If the bulls are indeed recovering, the RSI needs to remain above the neutral level. These developments will provide a tailwind for economic recovery.
DOGE/USDT daily chart
However, if DOGE fails to find support around $0.35 and closes below $0.34, it could extend the decline by 7% and retest the next support level at $0.31.
PEPE price looks promising
Pepe price reached a new high (ATH) of $0.000028 on December 9th and faced a 26.6% correction over the next nine days. As of Thursday, it has retested the 50% price retracement level from the November 4 low of $0.000007 to the ATH $0.000028 at $0.000018. This level is roughly in line with the daily support level of $0.000017, making it an important reversal zone.
Similar to DOGE, sideline investors can accumulate frog-themed meme coins around the $0.000018 level.
If PEPE rebounds from the $0.000018 level, it could extend the recovery by 28% to retest Monday's high of $0.000024.
However, the RSI on the daily chart has fallen below the neutral level of 50, indicating strong bearish momentum. If the bulls are indeed recovering, the RSI should remain above the neutral level. These developments will provide a tailwind for economic recovery.
PEPE/USDT daily chart
Conversely, if PEPE fails to find support around $0.000018 and closes below $0.000017, it could widen the decline by 6.8% and retest the weekly support level at $0.000016. .
