- Hoppy price action showed bullish conviction after setting ATH.
- Volatility is expected after demand fails to keep pace with the rapid gains.
Hoppy [HOPPY] the $112 million market cap meme coin was up 96% since last week. The focus on meme coins this cycle is partly due to the vast amount of unlocks that most altcoins see over time.
With meme coins, there are no unlocks, and there is no worry about a roadmap or the tech behind the token and what problems it solves. The founders’ qualifications do not matter- the only thing that matters is whether the community is growing and HODLing. What are the chances of strong HOPPY growth?
Fibonacci extension levels highlight tension
Source: HOPPY/USDT on TradingView
HOPPY crypto is a low cap meme coin. It has been trading since May, and saw a 36x surge from late May to July. This move took close to 40 days, posting the highs seen on the chart above.
Since then, a large retracement had taken place, putting the asset at a $17 million market cap. Since the second half of August, the price has nearly gone up seven times. In the past month the meme coin is up by close to 350%.
On the 1-day chart, the RSI formed a bearish divergence with the price. This came alongside HOPPY crypto reaching the $0.000281 resistance level that marked the 61.8% Fibonacci extension.
It saw a rejection from the resistance in recent hours. Its chances of a breakout were diminished by both the RSI’s bearish divergence and the OBV’s inability to break local resistances.
This showed a lack of buying volume behind the coin. The volume bars agree with this finding- they have not been significantly above average even though HOPPY saw massive gains recently.
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Hence, holders from lower levels could wait for a deep retracement to buy more of the coin. Patience would be key- even though the market structure and trend is bullish, the next move might take some time to develop.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
