- The volumes of both meme coins dropped sharply along with their prices.
- A few market indicators hinted at a trend reversal.
As an experienced analyst, I’ve seen my fair share of market fluctuations and trends in the crypto space. The recent surge of interest in Solana-based meme coins like MEW and POPCAT is an intriguing development.
In recent days, meme coins built on the Solana (SOL) blockchain, including POPCAT and MEW (Cat in a Dogs World), have experienced significant popularity growth.
As a crypto investor, I’ve noticed that meme coins have shown significant price fluctuations. In particular, those that attempt to rival established meme coins such as Bonk and DogwifhAT (WIF) have displayed particularly high volatility.
MEW and POPCAT on fire
As a crypto investor, I’ve noticed that the meme coin market has had a significant presence of coins inspired by dogs, such as Dogecoin [DOGE] and Shiba Inu [SHIB], over the past few years.
However, the trend is now changing with the inception of POPCAT and MEW, which are based on cats.
Recently, SolanaFloor, a well-known account on Twitter that shares information about the latest advancements in the Solana blockchain, drew attention to the significant growth in the market capitalizations of MyEtherWallet (MEW) and POPCAT within a short time frame.
Approximately three weeks ago, according to AMBCrypto’s report, MEW experienced a significant surge in value, resulting in an increase of over 200%. Consequently, MEW’s market capitalization surpassed that of POPCAT.
In the past 24 hours, the price surges of meme coins like MEW and POPCAT have ended, as their values decreased by more than 11%. Currently, MEW is being traded at $0.004315, while POPCAT is valued at $0.4157.
Is the buzz over?
According to AMBCrypto’s interpretation of Santiment’s findings, the prices of both meme coins experienced a decline, yet their trading volumes significantly decreased as well.
When both the quantity and price are decreasing, it’s often a sign that the downward trend in prices may not last forever.
To gain a clearer perspective on the direction of meme coins, we examined their 4-hour charts in detail. Our analysis revealed that MEW‘s Moving Average Convergence Divergence (MACD) showed a bearish crossover.
As an analyst, I’ve noticed that the asset’s Relative Strength Index (RSI) has dipped into the oversold territory recently. This could potentially lead to increased buying activity due to investors looking to capitalize on what they perceive as undervalued prices. Subsequently, we might witness a price uptick in the near future.
Based on the findings from Coinglass’ data analysis, MEW‘s Open Interest decreased in tandem with its price, implying a potential trend reversal.
Although MEW‘s price had potential to increase, the opposite was true for POPCAT. Its Relative Strength Index (RSI) moved in a downward direction away from the neutral point.
This suggested that the meme coin’s price might decline further before it rebounds.
Realistic or not, here’s MEW’s market cap in BTC’s terms
As a researcher, I’ve observed an unfavorable MACD indication for those cryptocurrencies based on cats and memes. Despite the potential price decrease, the rapid expansion of these coins has generated significant buzz within the crypto community.
How soon they can recover from their recent losses will be interesting to keep an eye on.
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2024-04-29 13:11