UseTheBitcoin Market Update (FLOKI, WIF, BONK, & PEPE) | May 28th, 2024

As noted here on our website, the recent Bitcoin halving has led to unexpected outcomes. This analysis focuses on the coins that have experienced the most significant movements post-halving. Meme coins, particularly, have taken center stage in the crypto space, consistently appearing as major players across daily, weekly, monthly, and yearly data.

Contrary to market expectations, major cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC) have shown little activity despite notable events such as Bitcoin spot ETF approvals and the Ethereum spot ETF 19b-4 approvals.

This trend prompts questions about the direction of the current bull run, with attention shifting towards meme coins and alternative cryptocurrencies.

FLOKI (FLOKI)

Floki is currently following an upward trend pattern, with attempts to surpass its resistance levels. Ideally, I would prefer FLOKI to retrace and establish a support level around $0.00026 before breaking above its resistance. However, if FLOKI continues to set new higher highs, I would consider buying again around the $0.00029 level.

The Relative Strength Index (RSI) indicates that we are nearing oversold levels, but there appears to be potential for further upward movement as there is still room for growth in the RSI. Hopefully, we can overcome the resistance levels by the end of the month.

dogwifhat (WIF)

While not performing as strongly as FLOKI, WIF is also attempting to break through its resistance levels. However, it faces a tougher challenge due to the formation of stronger resistance areas. 

My trading strategy for WIF mirrors that of FLOKI: I’ll consider buying if it breaks above its resistance levels and establishes a new support of around $3.50. Alternatively, I might also consider purchasing if it drops to around $3 or $2.80, aligning with Fibonacci levels. Currently, we are in a waiting mode, anticipating consolidation before making any moves.

Bonk (BONK)

Bonk is currently attempting to break out of its resistance, exhibiting a cup and handle pattern. My trading strategy involves buying if it successfully breaks above its resistance levels. Initially, I’ll buy at around $0.000040, investing a small amount, and then consider adding more if it surpasses its next resistance level at $0.000045. This approach allows for cautious entry with the potential for increased investment upon confirmation of a breakout.

Pepe (PEPE)

Last week, PEPE demonstrated impressive performance, showing resilience after breaking through its resistance levels. Despite reaching oversold levels in the RSI, there appears to be further upward potential for Pepe, potentially reaching around $0.000020. It’s worth noting that this figure represents an imaginary resistance level, so its attainment is uncertain. However, given PEPE’s recent momentum, such a scenario is within the realm of possibility.

Final Thoughts

It is important to remember that meme coins typically lack a solid foundation or real-world utility in the market. Their value often stems from hype and speculative trading rather than tangible assets or applications. While they can experience significant price movements driven by social media trends and community enthusiasm, investors should approach them with caution due to their inherently volatile nature and lack of underlying value.

For more in-depth technical analysis like this one, make sure to subscribe and hit the notification bell on UseTheBitcoin’s YouTube channel. We post daily videos covering the crypto markets, so don’t miss out!

Via: 2Usethebitcoin.com

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