News & Analyses

Bitcoin gains could fuel recovery in DOGE, SHIB, BONK

  • Dogecoin has seen a surge in new and active addresses in the past week. 
  • Shiba Inu-based scaling solution Shibarium completed its hard fork, but this failed to catalyze gains in SHIB. 
  • Bonk holders gear up for a return to April 25 top at $0.00002966. 

Prices of meme coins Dogecoin (DOGE), Shiba Inu (SHIB) and Bonk (BONK) are broadly steady on Tuesday, as the broader crypto market recovers on the back of Bitcoin’s recent gains. BTC climbed to a high of $64,400 on Tuesday, catalyzing gains in altcoins. 

Meme coins, considered relatively more speculative than other cryptocurrencies, have steadied on Tuesday.

Dogecoin on-chain activity points toward recovery

The largest meme coin in the crypto ecosystem has seen a surge in new addresses and an uptick in active addresses. Data from crypto intelligence platform IntoTheBlock shows that there has been a 3.71% increase in new addresses, a 3.40% increase in active addresses and a 3.78% increase in addresses with a zero balance in the past seven days. 

A surge in active and new addresses is typically indicative of the increasing relevance of the asset and a rise in demand among market participants. This fuels a bullish thesis for DOGE. 


Daily Active Addresses for DOGE

While IntoTheBlock statistics show a decline in the number of whales (large wallet investors) holding DOGE, the number of investors and retail traders holding the meme coin has increased in the past 30 days. Increased retail participation is typically considered a positive for an asset. 


Historical Concentration of DOGE

Shiba Inu holders digest news of hard fork

Shiba Inu’s Layer 2 scaling solution Shibarium completed its hard fork on May 3, an important upgrade to its chain. However, the development failed to catalyze significant gains for SHIB. 

SHIB holders are digesting the news of the hard fork, which is expected to bring faster transactions and higher predictability in gas fees. 

The meme coin is hovering close to resistance at $0.00002476, the 23.6% Fibonacci retracement of SHIB price decline between the March 5 top of $0.00004567 and the April 13 low of $0.00001830. 

SHIB could target the next level at $0.00002745, the volume profile that corresponds to a relatively high volume. This would represent over 15% gains in SHIB from current price levels. 


SHIB/USDT 1-day chart 

In the event of a decline in its price, the meme coin could find support at the April 13 low of $0.00001830. 

Bonk is likely on track for further gains

Bonk price has been in an upward trend since April 20. If the uptrend continues, the meme coin could head towards its April 25 top of $0.00002966, a 20% gain from the current price of BONK. At the time of writing, BONK is exchanging hands at $0.00002495. 

Before that, however, BONK could face resistance at its May 5 top of $0.00002787. Looking down, the meme coin could find support at $0.00002089, the 50% Fibonacci retracement of the climb from the April 13 low of $0.00001212 to the April 25 top of $0.00002966.

The Relative Strength Index (RSI) reads 53.91, well below the overbought zone, closer to the neutral level. The green histogram bars above the neutral line on the Moving Average Convergence Divergence Indicator support BONK gains. 


BONK/USDT 1-day chart 

A daily candlestick close below $0.00002089, the 50% Fibonacci placeholder, could invalidate the bullish thesis for BONK. BONK could sweep liquidity at $0.00001882, the 61.8% Fibonacci retracement of the climb from April 13 low to April 25 top. 

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