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Analysis

MEW coin faces $0.006 resistance – Why this retest is different

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MEW’s spot CVD shows a sign of profit-taking activity in the market, which did not bode well for holders.
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MEW coin faces $0.006 resistance - Why this retest is different
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  • MEW gained bullish momentum and trading volume suggested conviction.
  • The spot CVD gave a negative signal, but sentiment was still bullish.

cats in a dogs world [MEW] noted gains of 34% since the 18th of September. The lower timeframe momentum was turning bullish for the memecoin, but it faced two key resistance levels at press time.

These two levels marked the borders of the $0.006-$0.00633 supply zone, a region that MEW coin bulls have struggled to breach since August.

A retest of the resistance zone is at hand

MEW 6-hour Chart

Source: MEW/USDT on TradingView

In the past six weeks, the $0.004-$0.00434 zone has acted as a stable support zone. From here, MEW bulls have been able to engineer two rallies.

One was rejected at the $0.006 resistance level, while the other is in progress.

The trading volume surged massively on the 19th of September, going much higher than it did during the rally on the 23rd of August. This suggested that bullish strength was much higher during this attempt.

Consequently, more success is anticipated, but this is not guaranteed. A session close above $0.00633 would be necessary to change the bias bullishly.

The RSI was at 78 to show intense upward momentum, and the OBV rocketed higher on the back of elevated buying pressure. Overall, the chances of a continued upward run were good.

The rapid drop in spot CVD was a surprise for MEW coin

MEW Coinalyze

Source: Coinalyze

The Open Interest rose from $34 million to $73.9million within the past 48 hours, showing strong bullish conviction.

The positive Funding Rate showed that speculators were eager to go long and capture some profits, as MEW coin made quick gains.

Realistic or not, here’s MEW’s market cap in BTC’s terms

The spot CVD made large gains on the 19th of September, but these were erased a few hours later.

It was a sign of profit taking activity in the spot market and did not bode well for holders, since it hinted that sellers did not believe MEW could break the $0.006 resistance zone.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

 

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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