- Dogecoin led a powerful meme coin rally with a 13% surge, followed by double-digit gains in SHIB, PEPE, and BONK, all breaking past key resistance levels.
- However, overbought technical indicators suggest a potential short-term correction as these assets approach major hurdles.
The memecoin has began to make a comeback in the cryptocurrency market. Notably, Dogecoin has led the pack of coins that have experienced a surge. The token has surged slightly above $11.
Other tokens including Shiba Inu, PEPE and BONK have followed suit to lead a broader rally that saw the tokens notch impressive double-digits gains. This surge comes amid renewed optimism in the broader cryptocurrency market. These has seen tokens break past technical resistances and testing higher price levels.
DOGE Leads the Pack
According to data from Coinglass, DOGE surged past a descending trendline and its 50-day Simple Moving Average (SMA), triggering a wave of short liquidations worth $11.68 million — with more than 85% coming from short positions. Dogecoin’s breakout sets DOGE up for a potential move toward the $0.1809 resistance level, a key target for bulls.
Should DOGE close above this level, analysts predict it could rally as much as 80% in the coming weeks, eyeing $0.2106 and the 100-day SMA as next major resistance zones. However, a failure to breach $0.1809 could lead to a pullback toward its 50-day SMA support, potentially returning to a consolidation phase.
SHIB and PEPE Rally Through Resistance
SHIB and PEPE followed DOGE’s lead, each posting significant gains and breaking past their 50-day SMAs. PEPE jumped over 14% and flipped key resistance at $0.00000762. Now, the meme coin faces its next hurdle at the 100-day SMA. A successful breakout could pave the way to $0.00001076, but failure to maintain upward momentum may see a retest of its recent support.
SHIB mirrored this pattern, breaking a descending trendline and the 50-day SMA. If it continues to hold current levels, it could aim for the $0.00001612 resistance. Yet, like PEPE, SHIB faces potential selling pressure near the 100-day SMA.
BONK Blasts Higher
Among the top performers, Solana-based meme coin BONK soared over 20% to test the crucial resistance level at $0.00001579, reinforced by the 100-day SMA. BONK has shown resilience after bouncing 25% from its Monday lows, and a breakout above this zone could result in a 55% price increase.
However, any rejection at this resistance may see a return to the 50-day SMA, which has provided strong support recently.