Meme coins had a tough week as selling pressure drove prices lower across the sector. However, despite the weakness, momentum indicators show that losses may be waning, and signs of exhaustion in the downturn are appearing.
BeInCrypto has analyzed three meme coins that – as sentiment stabilizes – are already showing early signs of a potential turning point as January draws to a close.
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Gigachad (GIGA)
GIGA fell about 31% over the last week and is now trading near $0.00305. This decline reflects aggressive distribution with limited buying interest. Short candlesticks with shadows suggest weak interest in buying the dip thus far, keeping selling pressure high and sentiment cautious in the short term.
Despite the decline, momentum indicators point to a stabilization. The Relative Strength Index has now entered the oversold area, signaling that selling pressure may be subsiding. The $0.00305 level now acts as immediate support. If it holds, GIGA could experience a rebound up towards $0.00337 and $0.00362.
A stronger recovery requires a significant break above $0.00362. A breakout could change momentum and open the door for a rise towards $0.00417. If GIGA cannot defend $0.00305, the structure will weaken, and the price will likely fall towards the support at $0.00282, which invalidates the positive thesis.
SPX6900 (SPX)
Another of the meme coins to watch as January comes to a close is SPX. It has fallen nearly 30% from the peak around 0.516 to a recent low of about 0.358. The price drop broke several support levels and confirmed a strong bearish structure. However, the latest candle signals early stabilization, suggesting that selling pressure may be subsiding near the current support.
The momentum indicators suggest possible exhaustion on the downside. The Money Flow Index is close to the oversold area, which signals that the selling condition is pressured. The zone $0.358 – $0.401 is an important demand area. If defended, SPX6900 can rise towards $0.427 as the next target.
The strength of the recovery depends on developments from here. A close above 0.427 will improve the outlook and support a trend reversal. If support at 0.358 does not hold, confidence will weaken. In that case, the price may slide further towards 0.316, which would extend the bearish trend and invalidate the positive thesis.
Bonk (BONK)
BONK fell a relatively modest 10% over the week but is still trapped in a downward trend that has been active for over two weeks. The meme coin is currently trading near $0.00000859. The price development shows some robustness compared to others, but ongoing selling pressure still hampers upward momentum.
A bullish divergence has emerged during the decline. While the BONK price made a lower level, the Money Flow Index formed a higher low, indicating increasing buying pressure. This divergence suggests accumulation. If confirmed, BONK could break above $0.00000933 and rise towards $0.00001103, potentially ending the downturn.
The positive setup is conditional. If resistance is not broken, sellers remain in control. A loss of support at $0.00000815 would weaken the structure. In that case, BONK could slide towards $0.00000737, which would invalidate the positive thesis and extend the ongoing downward trend.
