Vine [VINE] experienced a significant market cap surge to $400 million earlier this week, only to retrace swiftly, bringing the memecoin’s market cap down to $120 million. However, showing resilience, VINE has rebounded strongly since this pullback and now boasts a market cap of $363 million as of the latest data.
With a remarkable 24-hour trading volume of $394.7 million, there is a clear indication of robust interest in the token, potentially laying the groundwork for VINE’s next upward move following its recent setback.
Bitcoin [BTC] could also influence VINE’s short-term price movements. The impending FOMC meeting scheduled for 28-29 January might introduce a hawkish surprise that could affect BTC’s trajectory. If BTC dips below $100k, it could cast a shadow on the overall market sentiment.
Short-Term Price Outlook Appears Bullish
An analysis of VINE’s 30-minute price chart demonstrates a resurgence of bullish sentiment. Following a rally to $0.506 that was interrupted on Thursday, the price retraced to the 78.6% Fibonacci level at $0.109 before swiftly rebounding over the last 6 hours.
The DMI indicator signals a robust bullish trend, corroborated by the price action marking new local highs. Furthermore, the MACD indicator exhibits a bullish crossover and has moved back above the zero line.
Nevertheless, the Chaikin Money Flow (CMF) metric lingers below 0, indicating significant capital outflows despite the heightened buying activity in recent hours. This underscores that the buying pressure may not be substantial enough to sustain a prolonged uptrend.
The announcement of President Trump’s executive order concerning cryptocurrencies triggered mixed reactions of excitement and caution within the market. While this news initially spurred volatility, the expected regulatory clarity from the task force is yet to translate into price appreciation for BTC. In the weeks ahead, a bullish upswing could potentially propel VINE’s prices higher.
Disclaimer: The views expressed in this article are personal opinions and should not be considered as financial advice or recommendations for trading or investments.