Giggle Fund [GIGGLE] extended its decline this month, deepening a drawdown that reached 71% since November. The token now traded near the wedge bottom, where oversold conditions and compressed momentum set up a possible turning point.
Market sentiment stayed fragile across memecoins as liquidity rotated into larger caps. Rising volume accelerated GIGGLE’s downside momentum as traders cut exposure to higher-risk tokens.
Pressure builds near key supports
At press time, volume rose while price fell, showing strong bearish control. GIGGLE continued testing the upper boundary of its falling wedge but failed to reclaim any momentum.
The key downside area sat near $70.
Losing this level exposed support around $47.30, a zone aligned with earlier liquidity absorption and the wedge’s historical reaction line. A sustained break below that level could pull GIGGLE into deeper declines.
The lack of strong support between these price levels and the $47 zone increased the risk of volatility spikes before stabilization.
Despite heavy selling, GIGGLE tapped the lower boundary of the falling wedge again, the same region that triggered sharp bounces in past cycles.
RSI dropped to extremely oversold levels, showing washed-out momentum. This combination often preceded recovery attempts if buyers stepped in.
Source: TradingView
Resistance between $160 and $172 remained the zone GIGGLE must break to reclaim higher ranges.
Until then, any rebound looked corrective rather than a full trend reversal. GIGGLE also needed to hold its daily ascending support, as a breakdown would mirror wedge failure patterns and extend the downside.
Macro headwinds weigh on memecoins
Bitcoin [BTC] and Ethereum [ETH] slipped ahead of the recent Fed decision, pulling the broader market lower. Risk sentiment turned defensive, with the Fear & Greed Index at 29/100.
Memecoins like GIGGLE typically weaken during such rotations as traders shift toward Bitcoin dominance and stable assets.
BTC dominance rising to 58.6% reinforced that preference for lower-risk exposure.
Sector-wide weakness also showed a steady rotation out of meme tokens as Funding Rates compressed and liquidity thinned.
GIGGLE’s volume spikes during down-moves indicated forced unwinds rather than accumulation.
Source: CoinGlass
Until sentiment improves across the meme sector, upside momentum may stay limited even with bullish technical structures forming.
Final Thoughts
- GIGGLE’s decline pushed the token into an oversold wedge retest, a setup that often precedes relief moves.
- With support tightening, traders might watch how GIGGLE behaves near this zone over the coming sessions.
Source: https://ambcrypto.com/another-giggle-bounce-coming-history-says-yes-but-only-if/
