Memecoins caution ahead – $PEPE and $WIF running out of steam?

With Bitcoin (BTC) potentially at the point of rejection, the rest of the cryptocurrencies could become a difficult hold, at least in the short to medium term. At the top of the risk curve, memecoins are even more perilous. $PEPE and $WIF are frontrunners, but are they now running out of steam?

$PEPE price rejected – how far can it fall?

Source: TradingView

The short term time frame chart for $PEPE (PEPE/USD) shows the price breaking out of the long-time descending trend line. After an initial price surge, the price came down and has now made some higher highs and higher lows, while following a new ascending trend line.

However, the $PEPE price did tag the 0.786 Fibonacci for this move, and looks as if it is now getting rejected from this level. With short term Stochastic RSIs on the way down, it just remains to be seen where a bounce can occur.

The ascending trend line may be favourite, but $PEPE bulls will need to prevent the price making a lower low, especially if that comes below $0.00000835.

Strong supports below for $PEPE

Source: TradingView

In the weekly time frame, it can be seen that the price is still holding above the 0.236 Fibonacci level. If $PEPE falls below this, the 0.382 Fibonacci at $0.00000963 is a good support level below, with the 0.618 and 0.786 also strong lines of support below this.

Strong upward surge for $WIF

Source: TradingView

The 4-hour chart for $WIF (WIF/USD) does look good so far. After breaking out, the price has achieved a 66% gain. Consecutive higher highs and higher lows do not signal any kind of a reversal. The latest small price correction is currently battling to hold above the 0.236 Fibonacci at $2.73. However, if the price breaks down below this and tags the 0.382 Fibonacci at $2.58, this would be a first lower low.

$WIF hits strong resistance in weekly chart

Source: TradingView

On the higher, weekly time frame, some concern is in the chart for the $WIF price. The price action shows that $WIF has tagged the 0.5 Fibonacci, which is a strong resistance. Also, at the bottom of the chart, the Stochastic RSI is currently topping. This may mean that a price dip is on the cards – it just remains to be seen whether this will come all the way back to support at $1.97.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.