MEMEFI staged a thrilling long-short showdown, with a single-day amplitude of more than 37%, causing market fluctuations. Before the violent fluctuations on May 6, the daily trend of MEMEFI continued to fluctuate narrowly, and the price always consolidated in the USD range of 0.0048-0.0053, with a sluggish trading volume, showing a typical low-sided trading feature.
However, the market suddenly changed abnormally on the same day, and the price instantly rose to US$0.007189, with an intraday increase of 18.32%. At the same time, the trading volume soared to US$1.06 billion, indicating that the main funds were strongly involved.
This wave of pulse-like rise may be driven by positive news, triggering market FOMO sentiment, and retail investors follow the trend and chase the rise and push up the market.
However, the rise failed to continue, and the price then fell rapidly, falling to US$0.005576 in the late trading session, with a single-day decline of 19.42%, and the full-day trading volume remained at a high of US$885.6 million, revealing the surge in selling pressure.
This trend is most likely due to the main force pushing up the shipment, or the profit-making market will be concentrated after the market sentiment fades.
Technical aspect deeply analyzes the K-line pattern: a long upper shadow negative line closed on the same day, and the upper shadow length was significantly lengthened, indicating that the US dollar encountered strong resistance, confirming the short-term top characteristics; the bulls failed to stand firm and quickly retreated, highlighting the weak buying power.
Moving average system: Both MA7 and MA30 moving averages are below the current price. The short-term moving average cash cross signs suggesting a rebound momentum, but you need to pay attention to the breakthrough of the key pressure level of US$0.0060.
Volume indicators: Thunderous rise and fall are accompanied by a surge in volume, and then the volume is rapidly shrinking, reflecting that market sentiment returns to rationality and may enter a stage of volatile consolidation in the short term.
The relative strength indicator (RSI) fell rapidly after rising, confirming that there is a demand for a pullback in the price.
The violent fluctuations in this MEMEFI fully expose the characteristics of small-cap currencies being easily manipulated by funds.
The main force achieved double kills of long and short through typical methods of "pull-up - shipment", and a large number of retail investors were trapped at high positions.
Given that market sentiment has cooled down, the price is expected to remain fluctuating in the range of USD 0.0050-0.0060, investors need to be wary of the risk of breaking.
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