Sundog rallies 700%: What’s fueling the surge and can it sustain?

• The short-term bias was extremely bullish, potentially overextended.
• A breach of the $0.33 level could lead to another 25% move upward.

Sundog [SUNDOG] registered remarkable gains over the past few days. Since Friday, the 23rd of August, SUNDOG has gained 84% at press time and counting. The technical indicators were also strongly bullish.

Since the 18th of August, the meme coin has gained nearly 700%. The breakout past the $0.262 range highs was a key development for the token.

Sundog reaches the next Fibonacci extension level in the blink of an eye

Source: SUNDOG/USDT on TradingView

Since Wednesday the 21st of August, SUDOG has been stuck beneath the $0.264 resistance level. It formed a range (pink) whose low stood at $0.176. Over the past 24 hours, the meme coin’s bulls have been on the front foot.

The RSI on the 2-hour chart was at 71 and showed overbought conditions were ripe. This does not guarantee a price pullback by itself. However, the CMF was also high at +0.47.

Additionally, the token was at the 23.6% Fibonacci extension level. This could serve as resistance and push prices lower.

Potential for further gains despite overextended conditions

Source: Coinglass

The Open Interest chart showed a massive spike in speculative activity, and the OI surge and the price breakout past the range highs highlighted intensely strong bullish momentum.

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

The high readings on the CMF and RSI signaled a potential top, but the momentum behind the new meme coin could easily push to new highs.

To the north, the next Fib extension targets were at $0.418 and $0.5. A session close above $0.329 would likely lead to these levels being retested.

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