Meme Coins Face Key Levels Amid Market Sell-Off
Meme coins Bonk (BONK), Dogwifhat (WIF), and Toshi (TOSHI) are at important points in their price trends. The broader crypto market saw over $1.5 billion in liquidations in the past 24 hours. This pushed the meme coin market cap down to $69.96 billion from $74.99 billion on Monday. Despite this, BONK, WIF, and TOSHI show signs of possible recovery.
Derivatives Data Shows Changing Trader Sentiment
Data from CoinGlass reveals shifts in trader interest. Open Interest (OI) for BONK and WIF rose by 1.97% and 2.33%, reaching $26.68 million and $328.63 million, respectively. This suggests traders expect a price reversal. Funding rates for BONK and WIF also turned positive at 0.0100% and 0.0026%, meaning bulls are paying to hold long positions.
On the other hand, TOSHI’s OI fell by 4.35% to $9.66 million. Its funding rate remains negative at -0.493%, indicating less trader interest and capital outflows.
Bonk Shows Signs of Short-Term Recovery
Bonk trades just above the $0.00002000 level after four days of losses. It recently fell below its 200-day Exponential Moving Average (EMA) at $0.00002198 but gained 2% on Tuesday. To start an uptrend, BONK needs to pass the 50% Fibonacci retracement level at $0.00002353. This could lead to a rise toward the 61.8% level at $0.00002961.
The number of BONK holders is nearing 985,000, close to the 1 million mark. The project plans to burn 1 trillion BONK tokens once holders reach 1 million. This burn could reduce supply by about 1.24%, potentially supporting the price.
However, momentum indicators show caution. The Relative Strength Index (RSI) dropped to 42, signaling selling pressure. The Moving Average Convergence Divergence (MACD) also gave a sell signal. A close below $0.00001908 could lead to a further drop to $0.00001520.
Dogwifhat Holds Key Support Level
Dogwifhat trades above $0.790 after bouncing from a low of $0.770. It reversed from the 200-day EMA last Friday but has lost value for four days. WIF remains above the $0.761 support, last tested on September 2. Falling below this could push the price down to $0.550, tested on May 7.
Technical signals show bearish momentum. The MACD continues downward after crossing below its signal line. The RSI stands at 40 and is falling, indicating more room to drop before becoming oversold. For a rebound, WIF must close above the 100-day EMA at $0.895. This could trigger a rise to the 50% Fibonacci retracement level at $1.212.
Toshi Faces Risk of Further Decline
TOSHI stays above the 50% Fibonacci retracement level at $0.0006836. It is moving down inside an ascending triangle pattern. Resistance lies at the 61.8% Fibonacci level of $0.0009115, while support follows a trendline connecting lows from April and September.
If TOSHI falls below $0.0006836, it may drop further to the 200-day EMA near $0.0005613. Momentum indicators show weakening bullish strength. The RSI dropped to 54 from overbought levels. The MACD is nearing its signal line, hinting at less buying pressure. A crossover could signal a selling opportunity.
On the upside, a close above $0.0009115 could lead to gains toward the 78.6% Fibonacci level at $0.0013731.
