Despite the fervor in memecoin trading, some trading firms suggest that recent market movements do not indicate an imminent correction in the short term.
Earlier today, the world’s largest cryptocurrency Bitcoin (BTC) gained an additional 5% taking its price past $43,000 levels. The recent price surge comes as BlackRock, WisdomTree, and others submit their updated S1 applications to the SEC.
Along with Bitcoin, the altcoin market is once again buzzing with activity. Solana, Avalanche, and Injective tokens experienced significant surges, reaching up to 20% over the last 24 hours as the memecoin trading craze entered its third consecutive week on these networks. Solana’s SOL witnessed an 8% increase, and Avalanche’s AVAX saw an almost 12% rise before retracing some gains.
Notably, dog-themed tokens like dogwifhat (WIF) and BONK gained traction on Solana, while a hen-themed token Coq Inu (COQ) led the meme narrative on Avalanche with an impressive surge of over 40% within the past day.
Traders are increasingly favoring these networks over Ethereum due to their significantly lower transaction fees and faster processing speeds. Solana transactions cost less than a cent and are completed in seconds, contrasting sharply with Ethereum, where transactions can cost at least $15 and take up to a minute.
Despite the fervor in memecoin trading, some trading firms suggest that recent market movements do not indicate an imminent correction in the short term. FxPro senior market analyst Alex Kuptsikevich said:
“Bitcoin has formed a double bottom on the intraday charts, and this dynamic indicates that the mood for a deeper correction has not materialized.”
Injective Protocol (INJ) Makes New All-Time Highs
Injective Protocol has been stealing the limelight in the altcoin space with its rally all the way to $40. As of press time, INJ is trading 26% up in the last 24 hours at a price of $39.24 and a market cap of $3.2 billion.
Since the beginning of 2023, the INJ price has recorded almost a 3000% gain so far. Several factors appear to be propelling the DeFi token price upward, with notable contributors being a substantial surge in Perpetual Futures trading and the pursuit of gains through leveraged positions, both of which are fueling the ongoing rally. Despite these bullish dynamics, signs of exhaustion are becoming evident in the current price.
The Daily Relative Strength Index (RSI) is reaching oversold values, displaying clear indications of a short-term peak. In the event of a corrective move to the downside, there is a possibility that the price might test the 23.6% Fibonacci retracement level, derived from the recent upswing spanning from the $28.29 swing low to the $41.25 high.
The primary support level is currently consolidating around the $35.00 zone, marked by multiple touches, and aligns with the 50% Fibonacci retracement level of the recent upward move from the $28.29 swing low to the $41.25 high.
Further declines could potentially drive the INJ price towards the $30.00 level and the 50-day simple moving average (blue). A breach and a conclusive close below $30.00 might extend the downward momentum. The subsequent critical support level to monitor resides at $23.80.