Top 3 meme coins Dogecoin, Shiba Inu and Bonk: Recovery likely if Bitcoin freefall ends
Dogecoin is likely poised to recover after sweeping liquidity at $0.1201.
Shiba Inu could observe a 17% decline before recovery in the meme coin.
Bonk holders gear up for nearly 28% gains in uptrend.
Meme coins Dogecoin (DOGE), Shiba Inu (SHIB) and Bonk (BONK) look primed for recovery, according to technical indicators, despite the broader crypto market correction prompted by the sharp drop in Bitcoin (BTC) price.
BTC price has plunged around 11% since April 30. If Bitcoin’s decline grinds to a halt, assets in other crypto sectors including meme coins – which are considered more speculative than most digital assets – could reverse their recent downtrend.
Dogecoin poised for recovery
Dogecoin is currently in a downtrend, forming lower lows and lower highs since March 28 top of $0.2288. The meme coin’s daily chart shows a fair value gap (FVG) extending between $0.13959 and $0.13395. DOGE price could tackle this imbalance and fill the gap before correcting further.
The Relative Strength Index (RSI), a momentum oscillator, is at its lowest since October at 33.04. DOGE’s RSI is likely headed to the oversold zone below 30, and an attempt to recover from the drop into this area could generate a buy signal for Dogecoin.
Sidelined traders could enter a trade in the Shiba-Inu-themed meme coin below the FVG and close to the May 1 low of $0.1201, the February 29 low of $0.1113 and the February 28 low of $0.0947.
Shiba Inu could sweep $0.000018 lows before recovery
Shiba Inu is currently exchanging hands at $0.00002210, closer to the midpoint of the Donchian Channel. This volatility indicator helps analysts identify trends in an asset, and also determine optimal points for entry and exit.
There are two entry points for Shiba Inu traders at $0.00002210 and $0.00002057, the first and second entry, with a target of the upper boundary of the channel, or the 20-day high in SHIB price,
