MEW Rallied as High as 20% After Breaking Out of Its Multi-Month Downtrend

MEW rallied as high as 20% after breaking out of its multi-month downtrend, following its listing on Binance Alpha.

Cat in a dogs world (CRYPTO:MEW) rallied as high as 20% after breaking out of its multi-month downtrend, following its listing on Binance Alpha.

According to crypto.news, MEW hit an intraday high of $0.311 on April 2, its highest level in six weeks and about 40% above its weekly lows. Its market cap was seated at $272 million, while its daily trading volume doubled over the past day at $176 million.

Further demand among its derivatives traders has also jumped. According to CoinGlass data, its open interest shot up by 40% in the last 24 hours and was sitting at over $45 million at press time. Plus, the weighted funding rate flipped from -0.0076% yesterday to 0.0017% today, showing that more traders are starting to lean bullish.

MEW rallied after it secured a listing on Binance Alpha, a platform within the Binance (NASDAQ:BNB) ecosystem that serves as a launchpad for emerging and experimental tokens.

While not a full exchange listing, Binance Alpha offers early-stage projects exposure and liquidity, and strong performance there can pave the way for a potential listing on Binance’s main exchange.

With the community now largely anticipating a potential listing on the world’s largest crypto exchange, the weighted social sentiment surrounding MEW has flipped largely positive, with the cat-themed memecoin trending on X as of press time.

Traders believe MEW has more room to run in the short-term. According to pseudo-anonymous trader Livercoin, MEW could continue to rally to $0.0033 and above now that it has retested above the $0.0030 key resistance level.

#MewCoin

Still massively undervalued.

We're used to shitcoins having 100x+ potential from lows, but this is getting ridiculous.

Last bull market highs were $0.007.

We're still 2x-3x away from that, even after today's move.

This has potential for serious, life-changing gains if it plays out. pic.twitter.com/2q062YQ914

— LiverCoin (@LiverCoin) April 2, 2024

Moreover, technical indicators seem to favor the bullish outlook.

On the 1-day/USDT price chart, MEW has broken out of a falling wedge pattern formed over the past 4 months. A break above such a pattern is highly bullish in technical analysis and can lead to sustained gains over the long term.

The Bull Bear Power indicator has been rising since March 21, suggesting bulls are taking back control and pushing bears to the sidelines. On top of that, the Chaikin Money Flow index is in the green, which shows there’s more buying pressure than selling, a good sign for continued strength.

Hence, the next likely target for MEW in sight is the $0.004 psychological resistance level, a break above which could push it towards its yearly high of $0.007.