The launch of Memecoin (MEME) on the Binance Launchpad came with much excitement as many bought into the hype. Besides, the accumulation that followed the launch, Memecoin also distributed airdrops to early players and those who got into the pre-sale season.
MEME’s pre-sale price was $0.183. However, after a 1005% earlier hike, MEME has lost 33.55% of its value according to CoinMarketCap, while exchanging hands at $0.017.
What Is Memecoin (MEME)?
Memeland, a web3 venture studio, developed Memecoin, and it is the native token of the Memeland ecosystem. As of this writing, MEME’s market cap was $157.72 million. The total supply of Memecoin is 69 billion, with 8.79 billion of the tokens in circulation.
According to Lookonchain, Memecoin allocated 25% of the total supply as a reward for early adopters of the project. In a November 8 post on X (formerly Twitter), two whales were part of the recipients. One got $1.39 million from the airdrop while another received $1.04 million.
2 whales received huge $MEME airdrops in the past 4 hours!
memeland.eth received 77M $MEME($1.39M) from airdrops and 138M $MEME($2.49M) from FireSale.
degensfund.eth received 57.93M $MEME($1.04M) from airdrops and 27.14M $MEME($489K) from FireSale.https://t.co/9uHSY3UQNb pic.twitter.com/jVe5iWQJhT
— Lookonchain (@lookonchain) November 8, 2023
These whales also got millions of MEME from a FireSale. A FireSale occurs when market players seek to offload assets at any price to offload their assets. So the price fall could be likely linked to the selling pressure caused by these whales.
MEME Value Drops
Although MEME’s price action reflects “a buy the rumor, sell the new” circumstance, however, indications from the Relative Strength Index (RSI) showed that there could be buying momentum acting as a catalyst for a MEME uptick.
At press time, the 1-hour MEME/USDT chart showed that the RSI was 41.56. This reading means selling pressure was still present in the market. At the same time, the sell-offs seemed to be waning as the RSI jumped from 36.93 on November 7.
Should buying momentum recover and the RSI reach 58.35, MEME may retest $0.02. But buying momentum may not be the only catalyst needed to help MEME revive. As of this writing, the Money Flow Index (MFI) was down to 49.94.
MEME/USD 1-Hour Chart (Source: TradingView)
The MFI measures the flow of liquidity into a cryptocurrency over a period of time. But unlike the RSI which considers price action, the MFI tracks volume. The downward trend of the MFI indicates that the MEME trend may continue. So, MEME may continue to follow a bearish divergence in the short term.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
