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- The upward crossover of the 50 EMA over the 200 EMA suggests a DOGE uptrend later.
- While SHIB might breakout, it might not reach its All-Time High again.
- With Solana’s backing, BONK might repeat last year’s performance after the halving.
Meme coins Dogecoin (DOGE), Shiba Inu (SHIB), and Solana-themed Bonk (BONK) all started the year slowly. On a Year-To-Date (YTD) basis, Dogecoin’s price had decreased by 14.35%.
SHIB has lost 16.28% of its value since the year started. BONK, which had an impressive performance in 2023, dropped by 23.19%. These performances have caused concern in the market, with participants asking if the cryptocurrencies would recover soon.
For now, it is uncertain if they would in the short term. But traders can look forward to the Bitcoin (BTC) halving as a catalyst that could drive the prices up. Historically, the Bitcoin halving has proven to be an event that pushes prices across the market up. This data was what led Coin Edition to assess if the event could impact these memecoins again.
Dogecoin (DOGE)
The last Bitcoin halving was in May 2020. Around that time, DOGE’s price was $0.0025. But a year after the halving, Dogecoin made an incredible run, and by May 2021, the price had changed hands at $0.55.
However, DOGE’s price at press time was $0.07, indicating that it was 91.42% above it’s All-Time High (ATH). But using the daily chart, the 50 EMA (blue) was above the 200 EMA (yellow). This position is known as a golden cross and is considered bullish for the long term.
Also, DOGE’s price was above both EMAs, suggesting that an uptrend is likely after the halving. However, DOGE might not hit $0.55 or higher immediately after the halving.
DOGE/USD Daily Chart (Source: TradingView)
But if the coin gets the kind of hype it had during the 2021 bull market, it could. Also, external factors like a potential integration with X (formerly Twitter) could play a role in its price action.
Shiba Inu (SHIB)
Like DOGE, SHIB was far below its ATH. At press time, it was 91.39% down from there. Shiba Inu also exploded in 2021 and tapped its high more than a year after the halving.
But the meme coin has become a shadow of its former self. As of this writing, SHIB’s price was $0.0000090. A look at the On Balance Volume (OBV) showed that SHIB was finding it hard to break out.
If the OBV fails to make higher peaks, then the price might keep stalling. Also, the Bollinger Bands (BB) showed that volatility around the token has become very low. This made it difficult for the price to fly higher.
SHIB/USD 4-Hour Chart (Source: TradingView)
For SHIB’s price to rise significantly, volatility needs to increase. Also, the OBV needs to trend much higher so distribution can be reduced.
Bonk (BONK)
BONK was not yet “born” during the last Bitcoin halving. But its performance in 2023 puts it in the conversation with the top meme coins.
According to the 4-hour chart, BONK has been able to reclaim $0.000011. This happened because of the increase in capital inflow indicated by the Money Flow Index (MFI).In addition, the RSI reading jumped to 57.25, suggesting an increase in buying momentum.
BONK/USD 4-Hour Chart (Source: TradingView)
Going forward, BONK might remain relevant because of the hype around Solana. If it stays that way, the coin could become one of the best performers post-Bitcoin halving.
The post Meme Coin Mania: Will DOGE, SHIB, and BONK Bask in Bitcoin’s Halving Sun? appeared first on Coin Edition.