WIF, BRETT, BONK All Down More Than 10% in Last Week as Memecoins Struggle

Key Takeaways

• Memecoins suffered significant declines, losing around 10% over the last seven days.
• WIF and BRETT dropped more than 20% in the past week.
• Further declines could invalidate potential bullish reversals.

The cryptocurrency market remained largely stagnant over the weekend, with most assets trading sideways . While some tokens managed to hold their ground, others suffered. In particular, memecoin saw a significant decline, losing around 10% of their value on average.

WIF, BRETT, and BONK have shown an even greater decline, with WIF and BRETT losing more than 20% of their value. What’s next for these memecoins as the market consolidates? 

WIF Price Analysis 

WIF experienced a remarkable surge in February, rising from $0.20 to $4.88 by late March, marking a nearly 4,000% increase following a five-wave impulse pattern. After peaking, WIF fell to $1.98 by April 13 but recovered to close above $2.30. Since then, it has climbed within an ascending channel, reaching $3.80 by May 29 before facing resistance.

By June 24, WIF dropped to a low of $1.50, completing an 85-day correction. After retesting this low in mid-July, WIF surged to nearly $3. However, this was also a corrective rise and was followed by another downturn to a lower low of $1 on Aug. 5. 

The daily chart RSI dropped to the oversold zone at 28%, and the price interacted with its descending support. A bounce from this line could have marked the completion of the WXYXZ correction from its March 31 peak of $4.80. 

If this was the case, the descending move since the Aug. 8 high of $2 could be a lower-degree correction before it starts moving decisively upward. WIF must hold above its previous low of Aug. 5 to confirm this outlook. Alternatively, if it proceeds its downward trajectory, it could face further decline to the $0.80 area. 

BRETT Price Analysis 

BRETT reached an all-time high of nearly $0.20 on June 9 before entering a correction phase. It formed a descending channel and hit a low of $0.10 on July 5. This support level was retested on July 8 and 12, leading to a price bounce.

On July 12, BRETT began an uptrend, peaking at $0.155 on July 20, meeting the channel’s resistance. Another downturn followed, leading to a low of $0.06 on Aug. 5. This could have been the completion of the WXYXZ pattern. 

Unlike WIF, BRETT passed the Aug. 5 low on the current downtrend, just past the daily candle close. This is why there is still a chance of a starting bull phase. However, further decline would invalidate this possibility as it already stands on shaky legs. 

BONK Price Analysis 

On March 5, 2024, BONK surged to an all-time high of $0.00003771, marking a nearly 400% increase from its February low. However, this peak was followed by a sharp 75% decline, dropping to $0.000012 by April 13.

By May 29, BONK reached $0.000044 before falling again to $0.000020 on June 24. The price then bounced once more but ended on a lower high of $0.000034 on July 21, which is why another downtrend followed, leading to a lower low of $0.000015 on Aug. 5. 

After a minor recovery, BONK is again moving to the downside, eying a descending support interaction. If it continues moving further to the downside, it could fall to the $0.00001 area and complete the WXY pattern from the beginning of March. But if it manages to hold above its Aug. 5 low, BONK could make a reversal and commence a bullish phase. 

Bearish Outlook for Memecoins?

Analyzing these three memecoin,s we can see that the outlook is primarily bearish. However, there are some chances of a bullish reversal. That said, these possibilities could be invalidated if the current downtrend from Aug. 8 persists and the prices go below their lows of Aug. 5. 

We could receive these validations soon, but there are no positive signs at the time of writing (Aug. 19 2024). This is why the bearish outlook is most likely. 

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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