the $112 million market cap meme token known as Hoppy [HOPPY] has seen an impressive 96% increase in value over the past week. This recent surge in interest towards meme tokens can be attributed to the frequent unlocking processes that many other alternative coins undergo over time.
Unlike traditional cryptocurrencies, meme tokens like Hoppy do not have scheduled unlocks, and there is less emphasis on the project’s roadmap or the technology backing the token. Instead, the primary focus lies on the community’s growth and their commitment to holding the token. The founders’ credentials play a minor role in comparison. The main question now arises: What are the prospects for Hoppy’s substantial growth?
Fibonacci extension levels indicate growing tension
The low market cap meme cryptocurrency, Hoppy, has been in circulation since May and witnessed a staggering 36x surge from late May to July, reaching its highest point as illustrated on the chart. However, a significant retracement followed, causing the market cap to drop to $17 million. As of the latter part of August, the price has surged nearly sevenfold. Over the past month alone, the meme token has experienced an increase of around 350%.
Examining the 1-day chart reveals a bearish divergence between the price and the RSI indicator. This occurred simultaneously with Hoppy cryptocurrency touching the $0.000281 resistance level, which represents the 61.8% Fibonacci extension. The recent rejection from this resistance level has weakened the possibility of a breakout, especially due to the bearish divergence in the RSI and the failure of the OBV to surpass local resistance levels.
The lack of significant buying volume behind the coin becomes apparent in these developments. Even with Hoppy’s substantial recent gains, the volume bars have not shown a notable increase above the average level.
Therefore, individuals holding Hoppy from lower levels may opt to await a substantial retracement to acquire more of the token. It is crucial to exercise patience in this situation, as although the market’s structure and trend signal a bullish trajectory, the next significant move may require some time to materialize.
Disclaimer: The content shared should not be considered financial, investment, trading, or any other form of advice; it purely reflects the writer’s perspective