Memecoins
Solana’s MEW and POPCAT fall 11%: cat memecoins end their rally?
- The volumes of both meme coins have fallen sharply as well as their prices.
- Some market indicators suggested a reversal of the trend.
Solana [SOL]-coins based on memes such as POPCAT and Cat in a World of Dogs [MEW] have gained momentum in recent days.
These meme coins displayed great volatility in their price actions as they challenged already established dog-based meme coins like BONK And dogwifhat [WIF].
MEW and POPCAT on fire
The meme coin market has been dominated by coins based on dogs like Dogecoin [DOGE] And Shiba Inu [SHIB] for several years.
However, the trend is changing with the creation of POPCAT and MEW, based on cats.
SolanaFloor, a popular X ID that posts updates related to blockchain developments, recently released a Tweeter highlighting how the market capitalization of MEW and POPCAT has increased in the recent past.
In fact, AMBCrypto reported a few days ago, MEW’s value jumped over 200% in the last 30 days. This explosive growth allowed MEW to overtake POPCAT in terms of market capitalization.
However, the bullish rallies of these meme coins came to an end in the last 24 hours, with the values of MEW and POPCAT falling by more than 11%. At press time, MEW was trade at $0.004315, while POPCAT was valued at $0.4157.
Is the buzz over?
AMBCrypto’s analysis of Santiment data highlighted that while the prices of the two meme coins fell, their volume also fell.
A drop in volume as well as price usually suggests that the downward price trend might be short-lived.
Source: Santiment
Therefore, we analyzed the 4-hour charts of both meme coins to better understand which direction they were heading. We observed that the MACD of MEW was showing a bearish crossover.
However, its Relative Strength Index (RSI) has entered the oversold zone. This could trigger buying pressure, which, in turn, could lead to higher prices in the coming days.
In fact, Coinglass’ data revealed that MEW’s Open Interest fell along with its price, further indicating a possible trend reversal.
Source: TradingView
Even though there were chances that MEW price would turn bullish, that was not the case for POPCAT. Its RSI recorded a slight decline from the neutral mark.
This suggests that the price of the meme coin could fall further before rebounding.
Realistic or not, here it is Market capitalization of MEW in terms of BTC
Its MACD also displays a bearish advantage in the market. Although these cat-based meme coins may see a price drop, their explosive growth has made them a hot topic of discussion in the crypto space.
It will be interesting to watch how soon they can recover from their recent losses.
Source: TradingView