After falling over 10% this week, Dogecoin and Pepe retested key support levels on Thursday.
Off-exchange investors seeking to accumulate DOGE and PEPE can operate around their support levels.
Traders should remain cautious, as momentum indicators for both memecoins show signs of weakness.
After falling over 10% this week, the prices of Dogecoin (DOGE) and Pepe (PEPE) retested their key support levels on Thursday. Off-exchange investors looking to accumulate dog-themed and frog-themed memecoins may consider buying at their support levels in hopes of a potential rebound in the future.
Dogecoin price shows potential for recovery.
Dogecoin price reached a yearly high of $0.48 on December 8 and fell over 23% in the following 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 November 3 at $0.14 to the high of December 8 at $0.48, making it a key reversal area. As of Thursday, the price has slightly rebounded, trading around $0.36.
Off-exchange investors seeking 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%, retesting 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 indeed return, the RSI must remain above the neutral level. Such a development would add momentum to a recovery bounce.
However, if DOGE fails to find support around $0.35 and closes below $0.34, it may continue its decline by 7%, retesting its next support level at $0.31.
PEPE price outlook is optimistic.
Pepe's price reached a historical 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 low of November 4 at $0.000007 to the ATH of $0.000028, reaching $0.000018. This level roughly aligns with the daily support level of $0.000017, making it a key reversal area.
Like DOGE, off-exchange investors can accumulate frog-themed memecoins around the level of $0.000018.
If PEPE rebounds from the level of $0.000018, it may continue a rise of 28%, retesting 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 indeed return, the RSI must remain above the neutral level. Such a development would add momentum to a recovery bounce.
Conversely, if PEPE fails to find support around $0.000018 and closes below $0.000017, it may continue its decline by 6.8%, retesting its weekly support level at $0.000016.