The cryptocurrency known as HahaYes [RIZO] experienced a remarkable 830% surge within a span of 20 hours on November 17th. However, subsequently, RIZO, the meme coin inspired by hedgehogs, underwent a 61% decline in value over the course of 12 hours. Given its relatively modest market capitalization of $27 million, such drastic fluctuations are not unexpected.
The increased activity surrounding meme coins within the Solana network became apparent through a notable rise in transaction volume. A consistent uptrend has been observed in the 7-day moving average since the start of September.
The breakout of Bitcoin [BTC] above its previous all-time high in early November further bolstered positive sentiment within the cryptocurrency space.
The surge in meme coin transactions led to the establishment of new wallet addresses. Similar to the historic gold rush phenomena of the 19th century, traders and investors are being lured by the appeal of small-cap coins within the Solana ecosystem, with hopes of achieving substantial returns such as 10x or even 100x gains.
An illustrative example of this trend is Peanut the Squirrel [PNUT], which boasted a market capitalization of $1.6 billion at the time of writing.
Is RIZO cryptocurrency poised to replicate these remarkable gains?
Upon analyzing the 1-hour price chart of RIZO, a bearish pattern is evident, with the Awesome Oscillator indicating a strengthening downward momentum. Nonetheless, this bearish trend appears to be of a temporary nature.
By examining the Fibonacci retracement levels, it becomes apparent that the $0.171 price point (multiplied by 1,000,000 for readability) serves as a significant support level.
A potential retest at this level could present an attractive buying opportunity, especially considering the rapid price escalation witnessed in recent days, which underscored a certain degree of market conviction towards the token.
While further gains are anticipated, the extent and pace of these potential gains remain uncertain.
Disclaimer: The information and views presented are not intended as financial, investment, trading, or any other form of advice, but are merely reflective of the author’s perspective.