MEW Poised to Break Through Psychological Barrier
The token Cat in a Dog’s World (MEW) has achieved a market capitalization of $1 billion, establishing itself as a significant player in the cryptocurrency market. A recent 9% surge in the last 24 hours pushed its price to $0.01218, attracting considerable investor attention. The question now is whether MEW can continue its bullish trajectory and reach the psychological barrier of $0.02.
Technical Analysis: MEW Demonstrates Strength
Daily Chart Signals a Bullish Trend
On the daily chart, MEW is trading firmly above the support level of $0.01124. The recent price surge has brought it closer to the resistance at $0.013, paving the way for a potential breakout toward $0.02, representing a possible 76.35% gain.
Rising Wedge on the 4-Hour Chart
The 4-hour chart shows a rising wedge pattern, often associated with potential bearish reversals. The resistance at $0.013 remains a critical level. Failure to break above this resistance could result in a pullback toward the $0.01124 support zone. On the other hand, a decisive breakout above this resistance would signal a continuation of the bullish trend, invalidating the bearish scenario.
Technical Indicators Support Bullish Momentum
50-Day and 200-Day Moving Averages: MEW is trading significantly above both SMAs, confirming a strong bullish trend.
Awesome Oscillator (AO): Green bars above the zero line indicate increasing buying pressure.
Chaikin Money Flow (CMF): A value of +0.05 reflects a strong inflow of capital into the asset, suggesting that buying activity outweighs selling.
MEW's Open Interest Doubles
Growing Trader Interest
Since November 5, open interest has increased from $82 million to $164 million, a more than 100% increase. This surge highlights rising trader activity and greater capital allocation toward MEW futures, signaling increased speculative interest.
Past Trends of Open Interest and Price
In the past, sharp increases in open interest have coincided with MEW price rallies, indicating strong trader participation during bullish phases. However, these periods were often followed by declines in both price and open interest, driven by profit-taking or reduced speculative enthusiasm. The synchronized growth of price and open interest since early November reflects renewed market confidence.
Liquidation Levels Highlight the Importance of Breaking Resistance
Concentration of Liquidations Near Resistance
Significant liquidation activity has been observed between $0.0120 and $0.0130, suggesting that many leveraged long positions are clustered around this resistance zone. If MEW fails to sustain its upward momentum, cascading liquidations could occur.
Critical Breakout Above Resistance
The current rise in leveraged positions underscores the importance of breaking through the $0.0130 level to maintain the bullish trend. Failure to do so may push the price back toward support at $0.0110.
Conclusion: Is MEW Ready for Further Growth?
The recovery from the $0.0110 level demonstrates that the market has absorbed selling pressure and regained bullish momentum. MEW now faces a critical test at the $0.0130 resistance level, and breaking through could pave the way toward the psychological milestone of $0.02. With strong market capitalization growth and increasing trader interest, MEW remains an asset to watch closely.
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