- Hoppy price action showed bullish conviction after setting ATH.
- Volatility is expected once demand fails to keep pace with rapid gains.
Hoppy (HOPPY), the $112 million market cap meme coin, is up 96% since last week. The focus on meme coins this cycle is partly due to the large number of unlocks that most altcoins see over time.
With meme coins, there is no unlocking and there is no worry about a roadmap or the technology behind the token and the problems it solves. The qualifications of the founders don’t matter – the only thing that matters is whether the community grows and HODLing. What are the chances of strong growth for HOPPY?
Fibonacci Extension Levels Highlight Tension
Source: HOPPY/USDT on TradingView
HOPPY crypto is a low-cap coin. It has been trading since May and saw a 36-fold increase from late May to July. This move took almost 40 days, reaching the highs seen in the chart above.
Since then, a significant retracement has taken place, putting the asset at a market capitalization of $17 million. Since the second half of August, the price has increased almost sevenfold. Over the past month, the meme coin has increased by almost 350%.
On the daily chart, the RSI has formed a bearish divergence with the price. This happened alongside the HOPPY crypto reaching the $0.000281 resistance level which marked the 61.8% Fibonacci extension.
She has experienced rejection from the resistance in recent hours. Its breakout chances have been diminished by both the bearish divergence of the RSI and the inability of the OBV to break local resistance.
This shows a lack of buying volume behind the coin. The volume bars agree with this conclusion: they have not been significantly above average, even though HOPPY has seen massive gains recently.
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Therefore, holders at lower levels might wait for a deep retracement to purchase more coins. Patience would be the key: even if the market structure and trend is bullish, the next move might take some time to develop.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
