MEW Surges Before Analysts Caution Bullish Trend: What’s Next for the Memecoin?

Executive Summary

Over the past month, MEW (Cat in a Dogs World) has experienced strong upward momentum, surging by 47.06%. However, market analysts indicate a potential correction as market sentiment turns bearish. Key indicators and expert analysis point to a possible downward trend, with stocks suggesting a shift in the trend.

Strong Uptrend Amidst Debate

Since hitting a low of $0.0046, MEW has been on an upward trajectory, reaching $0.01 by the writing date. This marked a 47.06% increase since the low, extending to a 16.74% bullish trend on weekly charts. Despite the optimism, some analysts were cautious about the memecoin’s future trajectory.

Analyst’s Perspective

One prominent analyst, Man of Bitcoin, suggested a potential pullback citing wave 4 of the Eliott wave. His analysis indicated MEW was working towards wave C of 3 on the upside. While he emphasized growth, the corrective wave 4 usually follows a peak in wave 3’s trend line.

Market Sentiment

In line with Man of Bitcoin’s analysis, MEW has shown a decline in both long-short ratios and open interest. The long-short ratio showed 52.7% of total positions shorted, indicating a bearish bias among traders. The declining open interest suggested reduced confidence and market participation.

Key Indicators Point to a Bullish Correction

The market sentiment indicates that while MEW is on a bullish trend, it might be ready for a downward shift. Shorts dominate the current market position, potentially signaling a price drop. Here’s what the charts and indicators reveal:

Long-Short Ratio and Open Interest

MEW’s current long-short ratio indicates a bearish market where most positions are shorted, potentially driving the price down. The open interest decline, dropping from $215 million to $152 million in 48 hours, suggests investors are closing positions without initiating new ones, further influencing the bearish sentiment.

Directional Movement Index (DMI)

The DMI shows that the negative trend has momentum, with the ADX surging to 54.8 and the +DI declining to 37. This data suggests that bears are gaining control, confirming further market doubt.

Potential Future for MEW

As MEW continues to trade within a bearish trend, it might find its support at $0.0087 according to analyst predictions. To maintain an uptrend, MEW must remain above its Simple Moving Average (SMA) at $0.0095.

Regardless of the current bullish trend, the impending market correction seems likely, based on both current market movements and expert analysis.

Stay Informed

Keep an eye on the latest MEW charts and stay updated on market sentiments. Understanding the potential shifts in market trends can help you make informed decisions on your investments.

Call to Action

Would you like to stay updated on the latest crypto trends and analyses? Subscribe to our newsletters and follow us on social media for the latest insights and expert opinions.