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The Memecoin price pumped more than 27% over the past week to trade at $0.02802 at press time as investors bet big on the altcoin.
The Memecoin Price Attempts to Break Long-Standing Negative Trend
4-hour chart for MEME/USDT (Source: TradingView)
The Memecoin price was able to break above a medium-term bearish trend line over the past couple of days, and is still trading above this line. After escaping this negative trend, MEME then went on to break above the $0.028125 resistance level as well.
Currently, the altcoin is trading within a consolidation channel. However, the Memecoin price is also resting on the recently-breached $0.028125 mark. Should it break below this significant price point, it may be at risk of correcting down to $0.025820 in the following 48 hours. This will also place the meme coin’s value back within the medium-term negative trend line. Continued sell pressure could then lead to the Memecoin price falling to as low as $0.023580 in the short term.
This bearish thesis may not materialize if MEME maintains a position above the $0.028125 level for the next 24 hours. In this more bullish scenario, the Memecoin price could enter into a bullish move towards $0.031020. The altcoin could even flip the resistance level into support should bulls continue to drive its price up.
Meme May Undergo a Correction Soon
Technical indicators suggest that the Memecoin price may drop in the next few hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators on the 4-hour chart are flagging bearish.
Over the past 8 hours, the RSI line broke below the Simple Moving Average (SMA) line. This specific technical flag signals that bears have gained a short-term upper hand against bulls. As a result, sellers may continue to drag the Memecoin price down in the coming 12 hours.
Meanwhile, MEME is at risk of entering into a short-term negative trend. The MACD line is closing in on the MACD Signal line. Should these two lines intersect, it will trigger a major bearish technical flag, and signal that MEME has entered into a bearish cycle.
The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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