The realm of meme coins has captured attention since Dogecoin [DOGE] experienced a notable surge to a three-year high. Similarly, small-cap meme coins have shown remarkable performance compared to the wider cryptocurrency market, as individual investors increase their buying activity to realize profits.
One of the latest meme coins to make a significant impact on the market is Cheyenne (CHEYENNE). After hitting an all-time low of $0.00729 on November 16th, CHEYENNE saw an impressive rally to reach a peak of $0.0866 just one day later following its listing on the MEXC exchange.
Currently, this meme coin based on Solana [SOL] is trading at $0.0562 with a market capitalization of $57 million.
Is the CHEYENNE Rally Losing Steam?
At the time of reporting, Cheyenne has experienced a more than 30% drop in a 24-hour period, indicating that profit-taking has begun after the meme coin hit an all-time high. The increased selling activity can be observed in its 15-minute chart.
The Relative Strength Index (RSI) stands at 45, showcasing a bearish trend due to the rising selling pressure. Moreover, the RSI line has crossed below the signal line, signaling a potential downturn if this trend continues.
The Moving Average Convergence Divergence (MACD), presently in negative territory, further reinforces the bearish outlook. The diminishing MACD histogram indicates waning interest from buyers at current price levels.
If this downward trend persists, CHEYENNE might test support at $0.049, with a breach potentially leading to further declines.
On the flip side, if traders interpret the recent dip as a buying opportunity, the meme coin could aim to challenge resistance at $0.062. Historically, overcoming this resistance has often resulted in a strong price rebound.
Excitement Surrounding SOL-Based Meme Coins Could Reignite Momentum
Recent data from CoinGecko reveals that the market capitalization of Solana-based meme coins has surged by over 5% in the last 24 hours, reaching $22.9 billion.
Notably, dogwifhat (WIF), the leading meme coin on Solana, has enjoyed a 20% rally over the past week. Other standout performers in the Solana meme ecosystem include BONK (BONK) and Peanut the Squirrel (PNUT).
Additionally, statistics from DappRadar show that the meme coin launchpad pump.fun has witnessed a significant uptick in activity, with volumes peaking at $144 million.
Both total transactions and user wallets on the platform have reached all-time highs of 2.72 million and 153,000, respectively.
Given the buzz surrounding Solana meme coins, there is potential for further upward movement for CHEYENNE. Nevertheless, traders should remain cautious and monitor for any potential corrections in the absence of fresh buying interest.