Why ‘struggling’ Bitcoin may be good news for market’s memecoins now
- Despite the price hike, sentiment around BOME remained bearish.
- A few of the metrics and indicators hinted at a trend reversal for WIF.
The crypto market recently turned bullish, allowing several top coins, including Bitcoin [BTC] and Ethereum [ETH], to turn green.
Several Solana [SOL]-based memecoins, like BOME and BONK, also followed the trend, but dogwifhat [WIF] seemed to have missed out.
BOME and BONK remain on track
According to CoinMarketCap, BOME and BONK followed the bullish market trend as their daily and weekly charts remained green.
Notably, BOME was up by more than 11%, while BONK’s value surged by over 7% in the last seven days. At press time, BOME was trading at $0.01203, and BONK had a value of $0.01203.
Thanks to the bullish price action, both of these meme coins’ social volumes remained high. BONK’s Weighted Sentiment also spiked, indicating that investors’ confidence in the meme coin was high.
Surprisingly, despite a double-digit price rise, BOME’s Weighted Sentiment dropped. This meant that bearish sentiment around the meme coin was dominant in the market.
Source: Santiment
AMBCrypto then analyzed BOME and BONK’s daily charts to see whether they would sustain their bull momentum. Beginning with BOME, we found that the meme coin was about to test its resistance at $0.0126.
The MACD displayed a clear bullish upperhand in the market, suggesting that the possibility of BOME breaking above the resistance was high.
However, the Relative Strength Index (RSI) registered a downtick, indicating that BOME might not be able to sustain its bull rally.
Source: TradingView
Interestingly, unlike BOME, BONK’s indicators suggest that the meme coin’s bull rally has just begun. For instance, its MACD displayed the possibility of a bullish crossover.
Its RSI had a value of 53., meaning that it was above the neutral mark. Additionally, the Chaikin Money Flow (CMF) also registered an uptick, which meant that the chances of a continued price increase were high.
Source: TradingView
WIF is left behind
While the aforementioned meme coins turned their charts green, WIF was left behind as its price had dropped by more than 6% in the last seven days.
As per CoinMarketCap, at the time of writing, WIF was trading at $2.83 with a market capitalization of over $2.8 billion. However, the bearish trend might end soon.
AMBCrypto’s analysis of Santiment’s data revealed that WIF’s Open Interest had dropped sharply along with its price.
Generally, a drop in the metric indicates that the ongoing price trend might change soon.
Source: Santiment
Read Bonk’s [BONK] Price Prediction 2024-25
Our analysis of WIF’s daily chart pointed out that its CMF registered an uptick, hinting at a trend reversal. However, the RSI continued to move sideways under the neutral mark.
Moreover, the Money Flow Index (MFI) registered a sharp downtick. These two indicators suggested that WIF might not join the bullish trend as its value might drop.
Source: TradingView
