The Solana-based meme token Cats in a Dog’s World (MEW) reached a new all-time high of $0.011 today, influenced by a 12% price increase over the last 24 hours.
Nonetheless, as market dynamics intensify, indications of buyer fatigue are starting to appear, suggesting a potential price correction may be imminent. This analysis highlights critical price levels that MEW holders should keep an eye on as a possible pullback approaches.
cats in a dogs world Buyers Could Soon Experience Exhaustion
MEW briefly reached a new all-time high of $0.01066 on Thursday before facing a minor setback. Currently, the meme coin is trading at $0.01056, down 2% from its peak.
While this rally has benefited numerous holders, BeInCrypto’s review of the MEW/USD 12-hour chart indicates a potential short-term price correction. A significant indicator for this is MEW’s overbought status, as shown by its Relative Strength Index (RSI), which stands at 72.73 at the moment.
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This indicator gauges the overbought and oversold condition of an asset. It ranges from 0 to 100, where values exceeding 70 point to an overbought status, indicating a potential correction is due. Conversely, values below 30 suggest the asset might be oversold and could soon see a rebound.
With an RSI reading of 72.73, MEW indicates an overbought condition. This signals potential buyer fatigue and hints at a possible short-term price pullback as traders may start selling to secure profits.
Moreover, MEW’s declining Chaikin Money Flow (CMF) corroborates this increase in profit-taking behavior among market players. At present, MEW’s CMF is below the zero line at -0.02.
The CMF measures the flow of money into and out of an asset. When it falls below 1, it indicates that selling pressure is prevailing, showing that more capital is exiting the asset than entering. This suggests that investors are liquidating positions, thereby decreasing the probability of a sustained upward trend.
MEW Price Outlook: The Bulls Need to Protect These Levels
MEW is presently trading at $0.010, slightly under the all-time high resistance of $0.011. As buying pressure diminishes, the meme token may see a retreat towards the support level at $0.009, representing a 13% decline from its current price. If demand fails to pick up at this point, MEW’s price could dip further to $0.0081.
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Nevertheless, this bearish sentiment could be overturned if profit-taking subsides and a fresh wave of demand surfaces. In such a scenario, MEW’s price could reclaim its all-time high of $0.011 and potentially extend beyond it.
Disclaimer
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