Meme coins have generally faced selling pressure this week, leading to a price decline. However, despite the bearish trend, key indicators suggest that the extent of losses is easing and that downside fatigue is accumulating.
BeInCrypto has analyzed these three meme coins. As we approach the end of January, investment sentiment is stabilizing, and signs of a rebound are being detected in the early stages.
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GigaChad (GIGA)
GIGA has dropped about 31% last week and is currently trading around $0.00305. This decline reflects aggressive selling and limited buying. The short shadows of the candlesticks indicate that the willingness to buy at the lows during the downtrend is weak, showing that selling pressure is likely to maintain control in the short term.
Despite the price decline, key indicators are signaling a bottoming out. The relative strength index has entered the oversold range, indicating that selling pressure is being exhausted. The $0.00305 range is acting as an immediate support level. If this support holds, GIGA could rebound to around $0.00337 and $0.00362.
For a stronger rebound, breaking through $0.00362 is necessary. If this level is exceeded, momentum may change, opening a path for a rise to $0.00417. Conversely, if the $0.00305 support is not maintained, the price structure will weaken, and GIGA could drop further to the support level of $0.00282. In this case, the bullish argument is invalidated.
SPX6900(SPX)
Another meme coin gaining attention at the end of January, SPX, has fallen over 30% from a recent high of $0.516 to a low of $0.358. This decline has resulted in the breach of several key support levels, confirming a strong bearish structure. However, recent candles have shown signs of stabilization, suggesting that selling pressure is easing near the current support level.
Key indicators confirm signs of selling fatigue. The money flow index is approaching the oversold area, suggesting oversold conditions. The $0.358 - $0.401 range is a key buying zone. If this area is defended, the price of SPX6900 could rebound to the next target of $0.427.
The strength of the rebound depends on further trend confirmation. If it clearly breaks the closing price of $0.427, the medium to long-term outlook will improve, and the possibility of a bullish reversal will increase. Conversely, if it fails to hold above $0.358, investor sentiment will weaken. In this case, the price could drop to $0.316, further strengthening the bearish trend and invalidating the bullish scenario.
Bonk (BONK)
BONK has seen a slight decline of 10% this week, but it remains trapped in a downtrend that has lasted for over two weeks. As of the time of writing, this meme coin is trading around $0.00000859. The price movement is more robust compared to its peers in cryptocurrency, but ongoing selling pressure is limiting upward momentum.
A strong bullish divergence has appeared amid the downtrend. While BONK has lowered its lows, the money flow index shows that buying pressure has increased as it has raised its lows. This divergence indicates that accumulated buying is taking place. If this signal is confirmed, BONK could break through $0.00000933 and rise to $0.00001103, breaking away from the downtrend.
The bullish scenario remains conditional. If the resistance is not broken, selling pressure will continue to dominate. If it falls below the support level of $0.00000815, the market structure will weaken. In this case, BONK could drop further to $0.00000737, invalidating the case for a rise, and the downtrend could continue.
