- The short-term bias was extremely bullish and possibly overextended.
- A break of the $0.33 level could lead to another 25% upside.
Sun dog [SUNDOG] has made notable gains in recent days. Since Friday, August 23, SUNDOG is up 84% at the time of writing. The technical indicators were also strongly bullish.
Since August 18, the meme coin is up almost 700%. Breaking past the $0.262 range highs was a major development for the token.
Sundog reaches the next Fibonacci expansion level in the blink of an eye
Source: SUNDOG/USDT on TradingView
Since Wednesday, August 21, SUDOG has been stuck below the $0.264 resistance level. It formed a range (pink) whose low was $0.176. Over the past 24 hours, the bulls of the meme coin have been in the lead.
The RSI on the 2-hour chart stood at 71, showing that conditions were ripe for overbought. This in itself does not guarantee a price drop. However, the CMF was also high at +0.47.
Additionally, the token was at the 23.6% Fibonacci extension level. This could act as resistance and push prices lower.
Potential for further gains despite overloaded conditions
The Open Interest chart showed a huge spike in speculative activity, and the OI spike and price breakout past the range highs highlighted intensely strong bullish momentum.
Realistic or not, here is SUNDOG’s market cap in BTC terms
The high readings of the CMF and RSI indicated a potential top, but the momentum behind the new meme coin could easily soar to new highs.
In the North, the next Fib expansion targets were at $0.418 and $0.5. A session closing above $0.329 would likely lead to these levels being retested.
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