- The recent market recovery has seen meme coins, such as WIF and DOGE, experience significant increases.
- WIF led the pack with a 24-hour increase of 20.58%, with DOGE following closely behind with a 13.80% rise.
- However, traders are advised to proceed with caution as the RSI indicates that WIF is overbought and DOGE is nearing a similar position.
As the crypto market recovers, meme coins are stealing the show with significant increases. However, with indicators suggesting overbought conditions, traders should tread carefully.
WIF and DOGE Lead Meme Coin Rally
The crypto market recovery between May 3 and 4 saw meme coins, particularly WIF and DOGE, experiencing significant increases. WIF led the cohort with a 24-hour increase of 20.58%, while DOGE also climbed by 13.80%. Other meme coins, including FLOKI, BONK, and SHIB, also joined the rally, outperforming most other assets in the market. At press time, WIF’s price was $3.32, with the 4-hour chart showing no resistance in sight. If this trend continues, WIF could potentially target $4.36 as its next support level.
DOGE Correlates with WIF
DOGE’s performance has shown a correlation with WIF. If this correlation continues, DOGE could see a 19.17% increase, potentially climbing towards $0.18 within a short period. However, traders should be cautious as the RSI indicates that WIF is overbought and DOGE is nearing a similar position. If profit-taking begins, the prices of these cryptocurrencies might retrace. Conversely, a bullish scenario could lead to higher values.
PEPE and FLOKI Follow Suit
PEPE and FLOKI have also experienced a breakout due to a bullish flag formation on their 4-hour charts. This market structure is similar to that of WIF, suggesting that these meme coins could also see significant increases if the current market conditions persist.
Conclusion
The recent market recovery has seen meme coins, particularly WIF and DOGE, leading the rally with significant increases. However, traders should proceed with caution as indicators suggest overbought conditions. The performance of other meme coins such as PEPE and FLOKI also indicates potential for growth, making the meme coin market an interesting space to watch in the coming days.
