BONK continued its rally on Sunday, rising 4% and forming a morning star pattern.
As bearish momentum weakens, PENGU suggests a reversal may occur in the short term.
The SPX meme coin is rebounding within an ascending wedge, with further upside expected.
This week, the overall cryptocurrency market shows bullish momentum, with meme coins based on the Solana (SOL) blockchain set for a reversal. As bearish momentum fades, Bonk (BONK), Pudgy Penguins (PENGU), and SPX6900 (SPX) all saw slight increases, continuing the rally from Sunday.
The recovery of BONK signifies a shift in trend momentum.
As of the time of writing on Monday, BONK is up over 4%, continuing the nearly 5% increase from Sunday. BONK's reversal trend dominates above the 50% retracement level of $0.00002350, which retraced from $0.00006230 on November 20 to $0.00000886 on April 7, with a target of the 61.8% Fibonacci level at $0.00002958.
A decisive closing price above $0.00002958 may extend bullish momentum to the level of $0.00004105, aligning with the 78.6% Fibonacci level.
Technical indicators suggest a shift in momentum, with the relative strength index (RSI) on the daily chart at 47, remaining at neutral levels and slightly rising. Meanwhile, the moving average convergence divergence (MACD) is slightly rising towards the signal line against the backdrop of declining red bars, indicating that bearish momentum is weakening.
Nonetheless, if the Solana-based meme coin decisively drops below the 50% retracement level of $0.00002350, it may retest the 200-day exponential moving average (EMA) at $0.00002129.
With bearish momentum weakening, PENGU aims for last week's high.
PENGU surged 6% on Sunday, suggesting a possible reversal from the pullback earlier last week. As of the time of writing on Monday, this Solana-based meme coin has risen over 2%, approaching the 78.6% Fibonacci level of $0.03713, after pulling back between $0.07000 on December 17 and $0.00370 on April 9.
Investors may view a decisive closing price above this level as a buy signal, targeting last week's high of $0.04660.
The RSI reading on the daily chart is 58, rebounding from neutral levels, while the decline in MACD and moving averages is slowing down with the reduction of red bars.
On the downside, the reversal of PENGU may test the support level marked by the low of $0.02893 on July 15.
SPX is expected to rise further within an ascending wedge pattern.
SPX6900 rose 7.50% on Sunday and is slightly up nearly 2% as of the time of writing on Monday. This Solana-based meme coin rebounded from a local support trend line connecting the lows of May 17 and June 21, with bulls targeting last week's high of $2.28.
Notably, the price action forms an ascending wedge pattern with the aforementioned support trend line and the resistance trend line formed by the peaks on February 14 and June 11.
Technical indicators show that bearish momentum is declining, as the red bars in the MACD indicator decrease, with an RSI reading of 47, reaching neutral levels and showing a rebound.
Conversely, if SPX pulls back below the support trend line around $1.48, it may test the 100-day EMA at $1.31.
