VINE reached a market capitalization of $400 million earlier this week, only to experience a rapid price decline that brought the memecoin’s market cap down to $120 million. Following this pullback on Thursday, VINE has demonstrated strong bullish behavior, currently boasting a market cap of $363 million at the time of writing.
The 24-hour trading volume stood at an impressive $394.7 million, indicating a high level of interest in the token. This heightened trading activity could potentially propel VINE to new highs following its recent correction.
The short-term price movements of Bitcoin [BTC] might also exert a noticeable influence on VINE’s price trajectory. The upcoming FOMC meeting scheduled for 28-29 January could introduce a hawkish surprise in the BTC market. A drop below $100k could have broader implications for market sentiment.
Price Movement Signals Short-Term Upside Potential
An analysis of VINE’s 30-minute price chart reveals a resurgence of bullish momentum. After reaching $0.506, the rally was interrupted on Thursday, causing the price to retreat to the 78.6% Fibonacci retracement level at $0.109. However, the token swiftly rebounded within the last 6 hours.
The DMI indicator indicates a strong bullish trend in progress, as evidenced by the token consistently marking new local highs. Additionally, the MACD signal line has crossed above the zero level, signaling a bullish sentiment in the market.
On the other hand, the Chaikin Money Flow (CMF) metric remains in negative territory at -0.08, suggesting significant capital outflows despite the recent surge in buying volume. This divergence implies that the buying pressure may not be substantial enough to sustain a prolonged uptrend.
The cryptocurrency market’s response to President Trump’s recent executive order concerning cryptocurrencies sparked mixed reactions. While there was initial volatility, the anticipated regulatory clarity outlined by the task force has yet to translate into a price increase for BTC. In the following weeks, a bullish sentiment could potentially lift VINE’s price further.
Disclaimer: The opinions expressed in this article are personal and should not be considered as financial, investment, or trading advice.