DOGE and PEPE Retest Key Support Levels: Will They Rebound?

After experiencing a decline of over 10% this week, Dogecoin (DOGE) and Pepe (PEPE) are now testing crucial support zones, drawing attention from investors eyeing potential rebound opportunities. However, momentum indicators reveal weakness in both memecoins, urging traders to approach cautiously.

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Dogecoin (DOGE): A Potential Rebound in Sight

Dogecoin hit an annual peak of $0.48 on December 8 but experienced a sharp 23% drop over the following 10 days. By Tuesday, DOGE had retested the 50-day EMA at $0.35, which aligns with the 61.8% Fibonacci retracement level, making it a critical zone for potential price reversal. On Thursday, the token marginally rebounded to $0.36.

Bullish Scenario: If the $0.35 support level holds, sideline investors may step in, potentially driving a 13.5% rebound to retest the $0.41 level reached earlier this week.

Bearish Scenario: A failure to maintain support at $0.35 and a close below $0.34 could lead to a further decline of 7%, targeting the next support at $0.31.

For traders, this makes $0.35 a pivotal level to watch closely.

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Pepe (PEPE): Encouraging Signs Amid Volatility

Pepe reached a new all-time high (ATH) of $0.000028 on December 9 but subsequently dropped 26.6% over the next nine days. As of Thursday, PEPE retested the 50% Fibonacci retracement level at $0.000018, which also coincides with a key daily support zone at $0.000017.

Bullish Scenario: If PEPE successfully bounces off the $0.000018 support, it could see a significant recovery of up to 28%, aiming for the $0.000024 high reached earlier in the week.

Bearish Scenario: However, a close below $0.000017 could trigger a further decline of 6.8%, with prices potentially retesting the weekly support at $0.000016.

This makes $0.000018 a critical level for traders seeking to capitalize on PEPE's price movement.

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Key Takeaways for Traders

Both DOGE and PEPE are approaching critical junctures, with support levels presenting possible rebound opportunities. However, given the current momentum weakness, traders should remain cautious and use proper risk management strategies.

Whether these memecoins regain momentum or slip further into bearish territory depends on their ability to hold these key levels, making the coming days crucial for investors.

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