- Rising social dominance on all ends underlines a bullish bent to the markets
- However, the RSI and volumes indicated that the bullish bias risked invalidation
Memecoins were not left out as crypto prices suffered significant declines over the last seven days. Consider this – Shiba Inu [SHIB] fell by 8.67%, Dogecoin [DOGE] by 11.09%, and BONK lost a whopping 17.56% of its value on the charts.
However, the last 24 hours have brought some sort of respite as all three cryptocurrencies appreciated a tad. In this article, AMBCrypto will examine if these memecoin prices might be able to sustain their recent hikes.
However, we will not focus on the technical part. Instead, we will address the forecast for the weekend from an on-chain perspective. To start, let’s look at the social dominance.
Attention may be a cure
For those unfamiliar with it, social dominance measures whether a coin is the primary focus of traders’ discussions or not. At press time, SHIB’s social dominance had risen to 1.188%.
This is a sign that the token has been getting popular in the media, compared to the first few days of the week. In terms of the price, this reading might make SHIB more volatile than others with a low social score.
Source: Santiment
As such, increased buying pressure might make gains incredibly higher. However, if selling pressure intensifies, the correction could be unusually steeper.
For DOGE and BONK, it was a similar situation as the same rose to 2.675% and 1.136%, respectively. If the prices of the cryptos maintain the momentum seen in the last 24 hours, then a surge could be a reasonable inference in the short-term.
As it stands, BONK might jump to $0.000024. Similarly, SHIB could hit $0.000030 before the weekend close while DOGE might retest $0.20 again.
AMBCrypto also analyzed the Relative Strength Index (RSI) which indicates momentum. At the time of writing, DOGE’s RSI reading had dropped after hiking initially – A sign of buying pressure slowing down.
Source: Santiment
A slight hike could be next
SHIB and DOGE also projected a similar trend, suggesting that the bullish bias explained above could be contested. However, if buying momentum returns to its heights, these predictions could be validated.
The next thing we did was to check the volume. DOGE’s volume, at press time, had significantly fallen from the peak on 3 April. Following the latest price appreciation and the volume being unable to find its footing, the price could find it difficult to go past $0.20.
Like Dogecoin, SHIB’s volume dropped too. Therefore, the price prediction for the weekend might be nowhere close to the peak of the first week in March.
Source: Santiment
For BONK, it was also the same situation. However, this forecast might be hasty considering that anything could change before the weekend comes to a close.
Realistic or not, here’s SHIB’s market cap in DOGE terms
Should the volume increase alongside the price action, then a monumental jump could be in place for these memecoins.