Will $MEW Continue to Go Up? Analyzing Short-Term Price Movement
$MEW, one of the most dominant meme tokens on the Solana Ecosystem, seems to be going strong even when the market is currently having a correction.
The token has managed to stay afloat even when big cryptocurrencies like Bitcoin are falling, proving that meme coins can diverge from the market to give traders profit even in difficult times.
However, the price surge might come to an end due to a new pattern that was seen on its chart. So, how will $MEW move in the next couple of days? Let’s take a look at its price chart.
Short-Term Price Analysis
Looking at its daily chart, it can be seen that $MEW just broke out of its downward trend to create a new possibility for an upward movement.
The new trend started to happen after the price recovered on Sunday, when the daily candlestick showed a huge green candle, giving hints of reversals for traders.
While most bigger market capitalization of cryptocurrencies is showing a red candlestick on the daily candlestick this Monday, $MEW continues to give a green candlestick, showing how traders are still speculating in the market through meme coins even when volatility is high.
$MEW Daily Chart / Source: Tradingview
Even though the price is currently going up, there is a potential for it to go down before going up even higher.
This is because there is a potential retest pattern after the price breaks out of the downward trend, also known as the breakout retest pattern.
The retest pattern usually happens with high volatility meme coins, but not 100% of the time, which is why there is potential for the $MEW token to go down before going up even higher.
This retest pattern can be seen as a good buying opportunity for traders who want to capitalize on the short-term movement.
Currently, the strong buying zone for $MEW stands at around $0.003095 with an opportunity to open a buy or long position.
The risk-to-reward ratio of this position is 1:3 which is considered a good ratio. However, the support zone of the token might lead to a 50% loss if the prediction is wrong.
But, with high risk comes high reward, as this 50% loss might also lead to a more than 150% reward, which is why it is predicted that $MEW will go down before it goes up.
The price target of 150% reward can be seen at its highest price, where if $MEW experienced another influx of buying volume, it will go up to its highest price or even higher creating a new all-time high. This is why a 150% reward might not be so out of reach.
$MEW Continue to Stay Up
Looking at $MEW, it currently ranks 11 compared to other meme coins in the market in terms of market capitalization.
Meme Coin Rankings by Market Capitalization / Source: Coingecko
According to Coingecko, it currently trails behind $BOME which was another popular meme coin that got overthrown by several new ones.
However, looking at the 24-hour volume, $MEW is still sitting in the top 10 rankings with its daily volume currently ranking 8th compared to other meme coins.
This means that the token still can go up again as the hype around it seems to not have vanished yet.
While there are possibilities of profit, traders and inventors need to remember that meme coins and tokens are volatile, so it is good to still use proper risk management when dealing with them, especially in volatile times like the current.
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