Meme coins like Bonk (BONK), Dogwifhat (WIF), and Floki (FLOKI) are holding a significant advantage to continue their upward momentum as the market enters a recovery phase and approaches important resistance levels. The impressive breakout of Bitcoin (BTC), which just set a new historical peak on Thursday, has provided strong momentum for this high-risk asset group. Notably, the risk appetite in the market is improving significantly, while Bitcoin's dominance rate has dropped below 65% — opening up opportunities for meme coins to break out and potentially become the pioneering names in the upcoming growth cycle.
The breakout momentum of Bonk's technical pattern needs one more positive closing session.
Bonk (BONK) continues to attract attention as it surged over 2% in Friday's trading session, reaching a new peak within 30 days. Previously, this meme coin jumped 12% on Thursday, marking a breakout above the inverted head and shoulders pattern, with the neckline at $0.00002375 — also the closing level on 10/5 on the daily chart.
Notably, when BONK crossed the neckline, it simultaneously broke through the important resistance level at the 50% Fibonacci retracement level ($0.00002350), calculated from the peak on 20/11 ($0.00006230) to the bottom on 7/4 ($0.00000886).
If the current upward momentum is maintained, BONK could approach the next target at the 61.8% Fibonacci level ($0.00002958), and further towards the 78.6% level ($0.00004105).
Technical indicators are supporting the bullish trend: the 50-day EMA has just crossed above the 100-day EMA, signaling a clear buying signal. The RSI has also surpassed the overbought threshold, while the MACD and the signal line are both pointing upwards, reinforcing bullish momentum.
However, if BONK loses the support zone at the 50% Fibonacci level, the 200-day EMA at $0.00001871 may act as a buffer, absorbing potential selling pressure.
WIF aims to surpass the 200-day EMA.
Dogwifhat (WIF) has reclaimed the important psychological level of $1 and continues to inch up, currently testing the 200-day exponential moving average (EMA) at $1.06. The breakout above the expanding wedge pattern has reignited growth expectations, marking the third consecutive increase.
If WIF can close above the 200-day EMA, the bullish trend may be reinforced and open up the opportunity to reach the 50% Fibonacci level at $1.21 — determined from the peak on 12/11 at $4.83 to the bottom on 9/4 at $0.30. In a more positive scenario, if this level is surpassed, the price may aim for the 61.8% Fibonacci level at $1.67.
The MACD indicator is signaling positively as the histogram continues to expand above the zero line, indicating that bullish momentum is increasing strongly. The RSI is currently at 63, approaching the overbought area but still has room to go further.
Conversely, if WIF fails to surpass the 200-day EMA and turns to adjust, the 100-day EMA at $0.860 will be an important support to watch.
FLOKI surged as it broke out above the channel.
Floki has officially broken out of the downtrend channel and surged strongly, surpassing the 200-day EMA and reclaiming the important psychological level of $0.0001. The current bullish momentum is aiming for the target of conquering the 50% Fibonacci level at $0.0001148 – a resistance level determined from the peak of $0.0002900 established on 21/11 to the bottom of $0.0000455 on 7/4 – indicating an increasingly clear trend reversal signal.
In technical analysis, when the price exceeds the 50% Fibonacci level, it often triggers an optimistic sentiment, encouraging investors to increase their buying positions to seek higher profits. Accordingly, the 61.8% Fibonacci zone, equivalent to $0.0001428, may become a profit-taking target and form an important resistance area in the short term.
Technical indicators are also supporting the recovery: MACD and the signal line have crossed above the zero line, while the RSI is nearing the overbought area at 68 – all reinforcing bullish signals.
However, in an adverse scenario, if FLOKI cannot hold above the 200-day EMA, the 100-day EMA around $0.0000848 will serve as the next support, helping to absorb potential selling pressure.