The sector of meme coins has attracted significant attention ever since Dogecoin [DOGE] experienced a spike to its highest level in three years. Small-cap meme coins have also been outperforming the wider cryptocurrency market as individual traders increase their purchasing activities to capitalize on gains.
One of the newly introduced meme coins that has been creating a buzz in the industry is Cheyenne (CHEYENNE). After hitting a record low of $0.00729 on November 16th, CHEYENNE made a remarkable rally to reach an all-time high of $0.0866 just one day later following its listing on the MEXC exchange.
As of the current moment, this meme coin based on Solana [SOL] is being traded at $0.0562 with a market cap of $57 million.
Is the Momentum of CHEYENNE’s Rally Slowing Down?
At present, Cheyenne has experienced a decrease of over 30% within a 24-hour period, indicating that sellers have begun locking in profits after the meme coin hit its all-time high. The spike in selling activity is evident in its 15-minute chart.
The Relative Strength Index (RSI), standing at 45, suggests a bearish momentum due to the increasing selling pressure. The RSI line has also started to trend downwards, aligning with the signal line.
If the RSI line crosses below the signal line, a sell signal could emerge, potentially leading to CHEYENNE entering a downtrend.
Furthermore, the Moving Average Convergence Divergence (MACD), currently in the negative territory, supports the bearish outlook. The diminishing MACD histogram bars indicate a waning interest from buyers to purchase the meme coin at its current price levels.
If this bearish trend persists, CHEYENNE may decline, testing the support level at $0.049. A breach of this support level might open the path for further declines.
Conversely, should traders interpret the recent drop as a buying opportunity, the meme coin could rise to test the resistance at $0.062. In the past, whenever CHEYENNE has surpassed this resistance level, the price has tended to rebound strongly.
Anticipation Surrounding SOL-Based Meme Coins Could Reignite the Momentum
Data from CoinGecko reveals that in the last 24 hours, the market capitalization of Solana-based meme coins has escalated by more than 5%, reaching $22.9 billion.
dogwifhat (WIF) stands as the largest meme coin on Solana and has surged by over 20% in the span of seven days. Other notable gainers within the Solana meme ecosystem include BONK (BONK) and Peanut the Squirrel (PNUT).
Information from DappRadar also indicates that meme coin launchpad pump.fun has witnessed a significant rise in activity, with volumes hitting a record high of $144 million. The total transactions and user wallets on this platform have concurrently reached their all-time highs of 2.72 million and 153,000, respectively.
Given the excitement surrounding Solana meme coins, there is a likelihood for CHEYENNE to experience further gains. However, traders should remain vigilant for any potential corrections if fresh buying activities do not materialize.