- The hop price action showed bullish conviction after setting ATH.
- Volatility is expected after demand fails to keep pace with rapid gains.
Hoppy [HOPPY] the $112 million market cap meme coin was up 96% since last week. The focus on meme coins in this cycle is partly due to the sheer amount of unlocks most altcoins see over time.
With meme coins, there are no unlocks and no need to worry about a roadmap or the technology behind the token and what problems it solves. The qualifications of the founders don’t matter; all that matters is if the community is growing and HODLing. What are the chances of strong HOPPY growth?
Fibonacci extension levels emphasize tension
Source: HOPPY/USDT on TradingView
HOPPY crypto is a low cap meme coin. It has been trading since May and saw a 36x increase from late May to July. This move lasted almost 40 days and posted the highs from the chart above.
Since then, a major retracement has occurred, helping the asset reach a market cap of $17 million. Since the second half of August, the price has increased almost seven times. Over the past month, the meme coin has risen almost 350%.
On the 1-day chart, the RSI formed a bearish divergence with the price. This came along with HOPPY crypto hitting the $0.000281 resistance level that marked the 61.8% Fibonacci extension.
It saw a rejection by the resistance in recent hours. The chances of a breakout were reduced by both the bearish divergence of the RSI and the inability of the OBV to break through local resistances.
This showed a lack of buying volume behind the coin. The volume bars agree with this finding: they were not significantly above average, even though HOPPY has seen huge gains lately.
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Thus, holders at lower levels could wait for a deep retracement to buy more of the coin. Patience would be key. Even though the market structure and trend are bullish, it may take some time for the next move to develop.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
