The third week of August 2024 has been eventful for meme coins. Unlike the second week, when a ton of the top-ranking cryptos endured losses, most meme coins posted gains.
Among the plethora of tokens, Ethereum-based Pepe (PEPE), Solana’s Popcat (POPCAT), and the recently launched Sundog (SUNDOG) on Tron were the standout performers. Here is a breakdown of what drove their massive gains.
PEPE’s Trading Volume Soars, Comes Back Alive
After a low period of activity, the price of frog-themed PEPE increased by 25% in the last seven days. The surge was largely driven by renewed interest, especially on August 23. On the mentioned date, the price of the meme coin jumped from $0.0000080 to $0.0000090 within a few hours.
This price increase was also accompanied by a sudden rise in trading volume, leading to speculation that PEPE’s price could be primed for more gains. As of this writing, the trading volume is almost $1 billion, representing a 106% hike in the last 24 hours.
From the technical angle, the daily PEPE/USD chart revealed that the token had earlier formed a bearish pennant. The pennant is a technical pattern that suggests a likely continuation of a downtrend after a brief consolidation period.
However, as seen below, bulls invalidated the pattern. Indications from the Relative Strength Index (RSI) show that a rise in buying momentum helped neutralize bearish desire.
The RSI measures momentum using the size and speed of price changes. If it increases, momentum is bullish, but a decrease indicates otherwise.
Read more: What Are Meme Coins?
In addition, the chart above shows that the RSI reading continues to move to the upside. If this trend continues, PEPE’s price might rise to $0.000010, where the 61.8% golden pocket ratio positions.
However, if crypto whales resume selling off the token or meme coins exit the recent mania, the price might retrace. Should this happen, the meme coin could drop to $0.0000082.
POPCAT Leverages Binance Listing
POPCAT, one of the top meme coins on Solana, posted an impressive 67.38% price increase this week. According to BeInCrypto’s findings, the viral cat-themed token hit a dramatic spike after Binance announced listing it on its futures market.
On the same day, Lookonchain reported that a whale purchased the meme coin, valued at a staggering $5.73 million. This development strengthened POPCAT’s upswing as the price hit $0.77.
Before POPCAT’s notable increase, the cryptocurrency was confined in a symmetrical triangle. This triangle appears when two trendlines connect a series of swing highs and lows converge.
In most cases, a breakdown below the technical pattern leads to a lower price. However, for POPCAT, it broke above the pattern while helping the price hit a monthly high. Furthermore, the Bollinger Bands (BB) has expanded, indicating extreme volatility around the Solana-based token.
Also, the upper band of the indicator had tapped POPCAT’s price. Typically, if the lower band hits the price, it is oversold. Therefore, the opposite happening indicates that the meme coin is overbought, suggesting that the price might decrease.
The Balance of Power (BoP), which measures buying and selling strength, appears to support this thesis because the reading was turned down.
For context, a rising BoP indicates that buyers’ strength outweighs sellers. But a falling one indicates sellers’ dominance. Thus, it seems that traders are booking profits from the recent increase.
Should this continue, POPCAT’s price might drop to $0.63. However, if buying pressure outpaces the selling volume, this prediction could be invalidated. Should this be the case, the value could hit $0.83.
SUNDOG Price Hits Another Peak
Talk about saving the best performer for the last. Sundog is a meme coin launched on Tron, thanks to the recently developed SunPump, a token generator conceived by Justin Sun, the blockchain’s founder.
Today marks nine days since the meme coin was launched. Within that short period, the price has increased by over 100 times its initial value. This price increase could be connected to the hype around SunPump’s development and the shift in attention from Solana meme coins to Tron’s.
In the last seven days, SUNDOG’s price has increased by almost 400% and recently hit a new high of $0.28. On the hourly timeframe, the price has slightly decreased to $0.26. Additionally, the Fibonacci retracement shows a potential pullback to the 23.6% level at $0.25.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Should holders of the meme coin realize more gains, the value might drop. However, the broader market expects SUNDOG to get more exchange listings like other meme coins. If this happens in the coming week, the price might surpass $0.28 and reach a new all-time high close to or above $0.30
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Victor Olanrewaju
https://beincrypto.com/meme-coins-third-week-august/
2024-08-24 08:00:00
