Analyst Joel Frank has announced 3 meme coin projects that investors can pay attention to this month. He also drew attention to the levels to be watched in these coins. Here are the details…
Biggest meme coin: What’s next in Dogecoin?
Dogecoin, the largest meme coin by market cap, had an ugly June. The cryptocurrency closed the month just below $0.067. Just above $0.086, it fell more than 22 percent. However, this figure masks significant volatility. DOGE/USD fell as much as 40 percent at one point when it briefly dropped below $0.05 in mid-June.
It has since rebounded about 33 percent from those levels. Last week, Dogecoin looked like it could make up for the losses of the whole month, according to the analyst. However, the cryptocurrency faced resistance in the form of a downtrend from mid-May just before testing the $0.08 level.
According to the analyst, the 50-Day Moving Average also contributed to capping Dogecoin’s gains over the past week. The cryptocurrency has since started trading just above its 21DMA (currently at $0.063). As July continues, Dogecoin is showing a bearish trend in both the short-term and long-term framework. The recent rejection and downtrend of the 50DMA suggest that the short-term momentum of the cryptocurrency will likely push it back to recent lows of around $0.05.
FED effect on crypto currency prices
If Dogecoin was able to make an upside break above this key short-term support area, it would certainly open the door to a rally towards $0.10 and beyond. However, the cryptocurrency remains in the grip of a downtrend that has been going on all year so far. This suggests that any break above $0.10 is unlikely.
Dogecoin’s next stop will likely be $0.05 instead of $0.10, assuming there is no big, wide buy in macro risk appetite sending cryptocurrencies higher. However, this assumption should not be taken lightly. Last week’s US inflation data showed US price pressures to slow or peak, while other data showed the growth momentum weakened. As we have also reported as Kriptokoin.com, the markets have been going down with the Fed’s tightening bets lately.
Second largest meme coin: SHIB analysis
June has been an uneven month for the Shiba Inu, the crypto community’s second favorite meme coin. SHIB/USD closed the month with a 12% loss just above the $0.000010 level. However, the meme coin fell as low as $0.000007 at one point. That’s about 40 percent down on a monthly basis. Likewise, SHIB/USD was trading with a monthly gain of about 4 percent when it rose to $0.000011. Over the past few days, the cryptocurrency has been consolidating between its 21 and 50-Day Moving Averages at $0.0000095 and $0.0000105, respectively.
SHIB/USD moved around a key long-term support level just below $0.0000010 last month. This level was the peak of the Shiba Inu’s trading range in the summer of 2021. Long-term techniques suggest that the Shiba Inu’s trend is bearish for a short-term rally, perhaps as high as resistance in the $0.00017 region. The cryptocurrency has been locked in a downtrend since the beginning of 2022. Since the start of the year, SHIB/USD has dropped nearly 70 percent.
If it eventually slides back to summer 2021 lows of around $0.000005, that would represent a drop of more than 85 percent per year. Risk appetite is expected to change with upcoming US data this month, a combination of further inflationary pressures and further weakening of growth. If that happens, SHIB could slide to summer 2021 lows, according to the analyst.
Levels to watch out for for BabyDoge
BabyDoge, the third largest meme coin by market capitalization, had a volatile month in June as well. The cryptocurrency reached $0.00000000025 on June 1st. Then it dropped to $0.0000000011 in the middle of the month. At this stage, BabyDoge’s price action is mostly determined by individual traders. In this regard, the BabyDoge community is doing well.
The official BabyDoge Twitter page has 1.4 million followers, the official Instagram page has 283 thousand followers. Telegram channel has over 200,000 members. Apart from the Dogecoin/Shiba Inu meme coins, according to the analyst, its strong community shows BabyDoge has a chance to grow it. Also, according to the analyst, the meme token definitely has the potential to rally in the next crypto boom if BabyDoge’s developers can bring meaningful benefit to the token through NFT creation and GameFi. For now, price action is likely to remain quite volatile.
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