The meme coin market has experienced a significant downturn over the past month, with its market capitalization dropping by 20% due to reduced trading activity.
Despite this decline, a resurgence in bullish interest is positioning certain meme coins for potential growth in September. These coins include Popcat (POPCAT), Pepe Fork (PORK), Floki (FLOKI), Shiba Inu (SHIB), and Book of Meme (BOME).
Popcat (POPCAT)
POPCAT is currently trading at $0.69, having surged by 46% over the past week. The technical setup for this Solana-based meme coin indicates increased accumulation by market participants in recent weeks.
At press time, POPCAT’s Relative Strength Index (RSI) stands at 57.58 and is trending upwards. This RSI level indicates that buying activity is gaining momentum, as the indicator measures whether an asset is overbought or oversold.
The Moving Average Convergence Divergence (MACD) also shows a strong bullish bias. The MACD line (blue) is above its signal line (orange) and the zero line, suggesting a solid uptrend.
If this trend continues, POPCAT’s price could rise to $0.71. However, if a reversal occurs, the price might drop to $0.62.
Pepe Fork (PORK)
PORK’s price has risen by 82% over the past month. In the last 24 hours, it surged to a monthly high of $0.00000016 before correcting to $0.00000013 at the time of writing.
The frog-themed meme coin is currently trading above its 20-day exponential moving average (EMA), which reflects the average price over the past 20 trading days. When an asset’s price is above this moving average, it indicates that recent prices are consistently higher than the 20-day average, suggesting strong and positive price action.
Read more: What Are Meme Coins?
Additionally, the token’s Chaikin Money Flow (CMF) is rising and currently stands at 0.23, above the zero line. A CMF value above zero indicates market strength, signaling liquidity inflow, which is crucial for sustaining a rally. If the trend remains, PORK may exchange hands at $0.00000024.
Floki (FLOKI)
Over the past month, Floki’s value has dropped by 13%. However, this price dip has created a potential buying opportunity for traders looking to trade against the market trend.
An on-chain assessment of Floki’s Market Value to Realized Value (MVRV) ratio shows that the metric is signaling a buy. According to data from Santiment, FLOKI’s 30-day and 90-day MVRV ratios are -34.30% and -55.26%, respectively.
When an asset’s MVRV ratio is below zero, it is considered undervalued, meaning its current price is lower than the average price of all its circulating tokens. This situation often presents a buy signal for traders who aim to buy low and sell high.
Shiba Inu (SHIB)
Despite SHIB’s double-digit price decline over the past month, whales have been accumulating more coins, as indicated by an 81% spike in large holders’ netflow.
Large holders, or whales, are addresses that control over 0.1% of an asset’s circulating supply. A surge in their netflow signals increased accumulation, a bullish sign that often prompts retail investors to follow suit, potentially driving up the asset’s value.
Read more: 7 Hot Meme Coins and Altcoins that Are Trending in 2024
If SHIB sees a broader market-wide accumulation, this could reverse its downtrend, with the price potentially rallying toward $0.000018.
Book of Meme
BOME’s value has dropped by 13% over the past week. Despite this decline, the meme coin’s Chaikin Money Flow (CMF) has been rallying and is now close to crossing above the zero line.
A bullish divergence occurs when an asset’s price falls while its CMF rises, indicating underlying accumulation despite the price drop. The increasing CMF shows positive money flow into the asset, suggesting that a potential rebound could be on the horizon.
If BOME begins to rally, its next price target could be $0.01. However, if the downtrend continues, BOME’s value might slip to its August 5 low of $0.005.
Disclaimer
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