During the last month, Cat in a Dogs World (MEW) has witnessed a significant increase in its value after hitting a low of $0.0046. The upward movement of MEW has been quite remarkable.
Presently, MEW is trading at $0.01, showcasing an impressive surge of 47.06% over the past month, while on a weekly basis, it has extended this bullish trend by 16.74%.
The current market situation has led to discussions among analysts regarding the future trajectory of this memecoin. While some are hopeful about the ongoing trend, others are more cautious and anticipate a possible downturn.
An analyst named Man of Bitcoin has raised concerns about a potential pullback, pointing to the correction in wave 4 of the Elliot wave theory.
Assessment of Market Sentiment
In Man of Bitcoin’s assessment, MEW is believed to be in the final stages of wave C of 3, indicating a nearing peak in the upward movement before a probable correction in wave 4.
Any breach below the ascending trendline would indicate a shift in market sentiment, signaling the conclusion of Wave 3 and the initiation of Wave 4, characterized by a pullback.
Despite MEW currently being in an upward trajectory, indications suggest that a correction might be on the horizon.
Analysis of MEW’s Chart
While the cautionary analysis above raises valid points about a potential decline in MEW’s value, it is crucial to consider other market indicators to form a comprehensive view.
Initially, the long-short ratio for MEW highlights a dominance of short positions in the market, with shorts holding 52.7% compared to longs at 47.2%. This reveals a bearish sentiment among traders.
Moreover, there has been a significant 29.30% drop in MEW’s open interest over the last 48 hours, falling from $215 million to $152 million, indicating a lack of confidence among investors about the direction of the memecoin.
The Directional Movement Index for MEW shows a loss of momentum in the current trend, with the ADX rising to 54.8 and +DI decreasing to 37, suggesting a growing influence of bears in the market.
Overall, while MEW continues to rise, there is an evident shift in market sentiment, indicating a potential upcoming correction. As observed, MEW is approaching the final stages of its uptrend, making a market adjustment increasingly likely.
If a decline occurs, MEW is expected to find support at $0.0087, with the memecoin’s sustained uptrend relying on staying above the SMA at $0.0095.