- The volumes of both meme coins dropped sharply along with their prices.
- A few market indicators hinted at a trend reversal.
Solana [SOL]-based meme coins such as POPCAT and cat in a dogs world [MEW] have been gaining much traction in the last few days.
These meme coins have displayed high volatility in their price actions as they challenged the likes of already established dog-based meme coins like BONK and dogwifhat [WIF].
MEW and POPCAT on fire
The meme coin market has been dominated by dog-based coins like Dogecoin [DOGE] and Shiba Inu [SHIB] for several years.
However, the trend is now changing with the inception of POPCAT and MEW, which are based on cats.
SolanaFloor, a popular X handle that posts updates related to the blockchain’s developments, recently posted a tweet highlighting how MEW and POPCAT’s market capitalization increased in the recent past.
In fact, AMBCrypto reported a few days ago that MEW’s value surged by more than 200% in the last 30 days. This explosive growth allowed MEW to overtake POPCAT in terms of market cap.
However, these meme coins’ bull rallies came to an end in the last 24 hours as MEW and POPCAT’s values dropped by over 11%. At press time, MEW was trading at $0.004315, while POPCAT was valued at $0.4157.
Is the buzz over?
AMBCrypto’s analysis of Santiment’s data pointed out that while both meme coins’ prices dropped, their volume also plummeted.
A decline in volume along with price generally suggests that the declining price trend might be short-lived.
Source: Santiment
Therefore, we analyzed both meme coins’ 4-hour charts to better understand which way they were headed. We found that MEW’s MACD displayed a bearish crossover.
However, its Relative Strength Index (RSI) entered the oversold zone. This might trigger buying pressure, which, in turn, can result in a price rise in the coming days.
In fact, Coinglass’ data revealed that MEW’s Open Interest dropped along with its price, further indicating a possible trend reversal.
Source: TradingView
While there were chances for MEW’s price to turn bullish, that wasn’t the case with POPCAT. Its RSI registered a downtick from the neutral mark.
This suggested that the meme coin’s price might decline further before it rebounds.
Realistic or not, here’s MEW’s market cap in BTC’s terms
Its MACD also displayed a bearish advantage in the market. Though these cat-based meme coins might witness a price decline, their explosive growth has made them a hot topic of discussion in the crypto space.
How soon they can recover from their recent losses will be interesting to keep an eye on.
Source: TradingView