Memecoins rallied on May 12 after the US and China agreed to cut tariffs, boosting risk sentiment. Dogecoin (DOGE) rose 3.68%, Shiba Inu (SHIB) gained 4.78%, and Official Trump (TRUMP) climbed 1.82%.
But charts hint the rally may be short-lived.
Dogecoin Price Analysis: Fractal Indicates 28-30% Drop Next
Dogecoin’s 20-day exponential moving average (20-day EMA; the purple wave) has crossed above its 50-day EMA for the first time since September 2024, forming a bullish “golden cross.” However, this setup preceded a 23.47% drop back then, and a similar pattern is emerging again.
The relative strength index (RSI) reads 71.65, pushing into overbought territory. DOGE’s recent rally could face exhaustion soon, especially as the price hovers near a local top. A pullback of 28.35% is possible, mirroring previous fractals.
RSI is at 69.38—just shy of being overbought, suggesting limited room for upside without consolidation. The token’s latest swing hints at a possible correction of 15.24%, especially as momentum stalls near resistance levels.
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If confirmed, the breakdown could send TRUMP’s price toward the $7.20 level, a potential 48.5% drop from current prices. The recent price action inside the wedge, coupled with declining volume, supports this bearish outlook.
Conclusively, the post-trade-deal bounce gave memecoins a much-needed boost, but technical patterns hint that the rally may be running out of steam. DOGE and SHIB face risks of sharp pullbacks despite golden crosses, while TRUMP shows signs of a potential breakdown.
