- Hoppy’s price movements have demonstrated strong bullish sentiment following its all-time high (ATH).
- Increased volatility is anticipated as demand struggles to keep up with the swift price increases.
Hoppy [HOPPY], a meme coin with a market capitalization of $112 million, has surged by 96% over the past week. The current interest in meme coins this cycle can be attributed, in part, to the significant number of unlocks typically occurring with many altcoins over time.
Unlike altcoins, meme coins do not involve unlocks, and there’s no concern regarding a roadmap or the underlying technology behind the token or the issues it addresses. The founders’ credentials are irrelevant—what truly matters is the growth and commitment of the community. What are the prospects for substantial HOPPY growth?
Fibonacci extension levels indicate market tensions
Source: HOPPY/USDT on TradingView
HOPPY is a low-cap meme coin that has been trading since May, experiencing a 36x increase from late May to July. This significant movement occurred over nearly 40 days, resulting in the highs depicted in the chart above.
Following this surge, the coin underwent a significant retracement, bringing its market cap down to $17 million. However, since the latter half of August, the price has risen nearly sevenfold. Over the past month, the meme coin has increased by about 350%.
On the 1-day chart, a bearish divergence is evident between the RSI and price action. This divergence coincided with HOPPY reaching the $0.000281 resistance level, which aligns with the 61.8% Fibonacci extension.
Recently, the token faced rejection at this resistance. The possibility of a breakout has been diminished by the bearish divergence observed in the RSI and the OBV’s failure to breach local resistance levels.
This indicates a lack of buying support for the coin. The trading volume corroborates this assessment—despite HOPPY’s substantial gains, the volume bars have not shown a significant increase above average levels.
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Therefore, holders who purchased at lower levels might consider waiting for a deeper retracement to acquire more of the coin. Patience is essential; while the market structure and trends appear bullish, the next movement could take time to emerge.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice and represents solely the author’s opinion
