After a decline of over 10% this week, Dogecoin and Pepe retested key support levels on Thursday.
Over-the-counter investors looking to accumulate DOGE and PEPE can operate around their support levels.
Traders should remain cautious as the momentum indicators for both memecoins show signs of weakness.
After a decline of over 10% this week, the prices of Dogecoin (DOGE) and Pepe (PEPE) retested their key support levels on Thursday. Over-the-counter investors looking to accumulate dog-themed and frog-themed memecoins may consider buying at their support levels in anticipation of a potential rebound in the future.
Dogecoin shows potential for recovery.
Dogecoin's price reached a yearly high of $0.48 on December 8 and subsequently fell more than 23% over the next 10 days. On Tuesday, Dogecoin retested the 50-day exponential moving average (EMA) at $0.35. This level roughly coincides with the 61.8% Fibonacci retracement level of $0.35 from the low of $0.14 on November 3 to the high of $0.48 on December 8, making it a key reversal area. As of Thursday, the price has slightly rebounded, trading around $0.36.
Over-the-counter investors looking to accumulate dog-themed memecoins can invest around the $0.35 level.
If the support level of $0.35 holds and DOGE recovers, it may continue a recovery momentum of 13.5% and retest Tuesday's high of $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 bulls do make a comeback, the RSI must stay above neutral levels. Such a development would add momentum to a recovery rebound.
However, if DOGE fails to find support around $0.35 and closes below $0.34, it may continue its decline of 7% and retest its next support level at $0.31.
The price outlook for PEPE is optimistic.
The price of Pepe hit an all-time high (ATH) of $0.000028 on December 9 and experienced a 26.6% pullback over the next 9 days. As of Thursday, it retested the 50% price retracement level from the November 4 low of $0.000007 to the ATH of $0.000028, reaching $0.000018. This level approximately aligns with the daily support level of $0.000017, making it a key reversal area.
Like DOGE, over-the-counter investors can accumulate frog-themed memecoins around the level of $0.000018.
If PEPE rebounds from the level of $0.000018, it may continue its upward trend of 28% and 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 bulls do make a comeback, the RSI must stay above neutral levels. Such a development would add momentum to a recovery rebound.
Conversely, if PEPE fails to find support around $0.000018 and closes below $0.000017, it may continue its decline of 6.8% and retest its weekly support level at $0.000016.
