Journalist
Posted:
- MEW gained bullish momentum and trading volume suggested conviction.
- The spot CVD gave a negative signal, but sentiment was still bullish.
cats in a dog world [MEW] posted a 34% gain since September 18. The momentum on the lower time frame turned bullish for the memecoin, but faced two key resistance levels at the time of writing.
These two levels marked the boundaries of the $0.006-$0.00633 supply zone, a region that the MEW mint bulls have struggled to break through since August.
A retest of the resistance zone is imminent
Source: MEW/USDT on TradingView
Over the past six weeks, the $0.004-$0.00434 zone has acted as a stable support zone. From here MEW bulls were able to organize two rallies.
One of them was rejected at the $0.006 resistance level, while the other is still developing.
Trading volume soared on September 19th, going much higher than during the August 23rd rally. This suggested that the bullish strength was much higher during this attempt.
So more success is expected, but this is not guaranteed. Closing a session above $0.00633 would be necessary to change the bias bullish.
The RSI stood at 78, showing intense upside momentum, and the OBV shot higher on increased buying pressure. Overall, the chances of a further upward trend were good.
The rapid decline in spot CVD was a surprise for the MEW coin
Open Interest rose from $34 million to $73.9 million in the last 48 hours, showing strong bullish conviction.
The positive funding rate showed that speculators were eager to go long and make some profits as the MEW coin quickly posted gains.
Realistic or not, here is the market cap of MEW in terms of BTC
The spot CVD made big gains on September 19, but these were wiped out a few hours later.
It was a sign of profit-taking activity in the spot market and did not bode well for holders as it indicated that sellers did not believe MEW could break the $0.006 resistance zone.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer