Dogecoin, Shiba Inu, and Bonk prices are in the spotlight this week as meme stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) surged. DOGE was trading at $0.1485 on Tuesday morning while Shiba Inu retreated to $0.000023. Pepe, on the other hand, defied gravity and soared to a record high of $0.000011.
Return of meme stocks?
The biggest story on Monday was the return of meme stocks like AMC, GameStop, Blackberry, and ContextLogic (WISH). GameStop and AMC stocks surged by over 70% after Roaring Kitty returned to X, formerly known as Twitter.
Roaring Kitty is a well-known trader who popularized the concept of meme stocks in 2021. At the time, GameStop’s shares surged from less than $5 to over $120 within a few weeks. Similarly, AMC, an embattled theatre chain jumped from a low of $11.5 on January 11 to a high of $394 in June.
These stocks surged even as concerns about AMC and GameStop remained. AMC earnings released this month disappointed, with total sales falling by over 5% YoY. The management also hinted that the second quarter will be challenging because of last year’s strikes in Hollywood.
AMC has also become a dilution machine as it deals with a mountain of debt and lease payments. It has raised over $1 billion in the past few years, with the most recent cash raise coming a few months ago. I believe that AMC’s management will take advantage of the current stock surge to sell more shares.
AMC’s key challenge is that its sales are slowing, profits are evasive, and debt maturities worth over $4 billion are coming in the next three years.
GameStop, on the other hand, is in a dying business as more people opt for digital games and online shopping for gaming consoles. As a result, its sales and profits have continued to drop in the past few years. Revenues dropped from $6.46 billion in 2019 to $5.2 billion in 2023.
However, unlike AMC, GameStop has one of the cleanest balance sheets in the retail industry. It has minimal debt and over $1 billion in cash.
The ongoing surge in meme stocks could have major implications in the $52 billion meme coin industry. The sharp increase in meme assets like GameStop, AMC, and Blackberry in 2021 helped to push these meme tokens sharply higher.
Pepe price forecast
Turning to the daily chart, we see that Pepe has defied gravity in the past few weeks. It has jumped from $0.00000394 on April 13th to a record high of $0.000011. It crossed the previous all-time high of $0.000010, partially invalidating the double-top pattern that has been forming.
Pepe remains above the 50-day and 100-day Exponential Moving Averages (EMA) and the median line of Andrew’s Pitchfork tool. Therefore, the outlook for the token is bullish, with the next point to watch being the psychological level at $0.000012. This view will be confirmed if it moves above this week’s high of $0.000011 and if the meme stock surge continues.
Shiba Inu price forecast
Shiba Inu, unlike Pepe, has been under intense pressure in the past few months. It has crashed by almost 50% from its highest point this year, moving below the 50% Fibonacci Retracement level.
It is consolidating between the 50-day and 100-day moving averages. On the positive side, the token has formed an inverse head and shoulders pattern, a popular bullish sign. It is now trading at the neckline of this pattern.
Therefore, there is a likelihood that the SHIB price will have a bullish breakout in the coming weeks. If this happens, it will rise from $0.000023 to $0.000030.
Dogecoin price prediction
Like Shiba Inu, Dogecoin has tumbled by almost 50% from the YTD high as the crypto rally faded. It has crashed from $0.23 to the current $0.15. On the daily chart, the token has moved inside the 50-day and 100-day moving average and slightly below the first support of the Andrew’s pitchfork tool.
It also formed a hammer candlestick pattern on May 1st and is in the process of forming a small inverse head and shoulders pattern. Therefore, more upside will be confirmed if it rallies above the first support of the pitchfork indicator at $0.1650.
Read more: where to buy Dogecoin.
