Top two meme coins on the verge of breakout as Ethereum nears all-time high
- Ethereum breaks four-year resistance, increasing the chances of hitting a new record high.
- Bonk holds above its 50-day EMA support as bulls fight for a breakout to the July peak of $0.00004074.
- Pepe shows signs of an upward trend reversal backed by a MACD indicator buy signal.
Ethereum (ETH) price is extending its uptrend toward its record high of $4,878, reached in November 2021 after breaking above the resistance-turned-support level at $4,000 over the weekend. While interest in the largest smart contracts token by market capitalisation remains steady, investors may want to shift their attention to ecosystem meme coins such as Bonk (BONK) and Pepe (PEPE), which are delaying their bullish breakout.
Ethereum upholds its bullish structure
Ethereum offers bullish signals starting with the Moving Average Convergence Divergence (MACD) indicator. With the blue MACD line above the red signal line on the daily chart, the path of least resistance could remain upward as investors are encouraged to increase exposure.
The Money Flow Index (MFI) indicator, which measures the amount of money flowing into and out of ETH, is moving upward toward the midline, suggesting that buying pressure currently overshadows supply.
A break above the short-term hurdle at $4,500 could affirm the bullish grip, increasing the chances of a breakout to the record high.
ETH/USDT daily chart
Bonk holds key support
Ethereum-based meme coin Bonk is trading at around $0.00002642 at the time of writing, representing a 35% decline from its July peak of $0.00004074. Despite the drawdown, Bonk sits above support provided by the 50-day Exponential Moving Average (EMA) at $0.00002559.
The upward-moving MFI indicator backs the bullish outlook. If the uptrend toward the midline remains intact, demand for BONK could overwhelm supply, thus providing a tailwind to propel the recovery toward $0.00004074 in the medium term.
BONK/USDT daily chart
Traders should also consider the possibility of a buy signal from the MACD indicator. The signal, calling on investors to increase exposure, would manifest with the blue MACD line crossing and holding above the red signal line.
Pepe offers technical bullish signals
Pepe price is edging lower, reflecting the prevailing low sentiment in the meme coin market. Following a 3.5% decline on Monday, the token exchanges hands at around $0.00001169 at the time of writing.
The 50-day EMA provides immediate support at $0.00001150 with the 100-day EMA and the 200-day EMA slightly below at $0.00001126 and $0.00001120, respectively.
PEPE/USDT daily chart
A reversal could follow if the above support range holds, evidenced by a MACD indicator buy signal. The green histogram bars above the zero line back the bullish outlook, suggesting that buyers still have an opportunity to push for recovery, targeting the July peak of $0.00001470 and then the next hurdle at $0.00001629, tested in May.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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