Market
Why SUNDOG Price Surge May Signal a Bull Trap Ahead
Tron-based meme coin Sundog (SUNDOG) has surged by 8% in the past 24 hours, breaking above a falling wedge pattern it had traded within since September.
However, BeInCrypto’s analysis of the meme coin’s technical setup indicates that the recent rally could be a false breakout. This assessment dives into the reasons behind it and outlines key signals for SUNDOG holders to watch closely.
SUNDOG’s Surge May Cause a Bull Trap
An assessment of the SUNDOG/USD one-day chart has revealed that the meme coin broke above the upper line of its falling wedge during Thursday’s intraday trading session. This pattern is formed when an asset’s price moves between two descending trend lines, with the upper line acting as resistance and the lower line as support.
A breakout above the wedge’s upper trendline is a bullish move. It suggests buyers are gaining strength over sellers and hints at a sustained price increase. However, a closer look at some of SUNDOG’s momentum indicators suggests that this rally may be a false breakout, potentially setting up a bull trap.
A bull trap occurs when an asset’s price briefly breaks above a key resistance level which would usually signify a positive shift in trend. However, instead of continuing the uptrend, the price falls again, ‘trapping” those who bought in on the bullish signal.
The setup of SUNDOG’s Super Trend Line is a notable indicator of this potential bull trap. At press time, the red line of the indicator rests above SUNDOG’s price.
The Super Trend indicator tracks the overall direction and strength of an asset’s price trend. It appears as a line on the price chart that changes color according to the trend’s direction: green for an uptrend and red for a downtrend.
When the Super Trend line appears below the asset’s price, it indicates an uptrend, suggesting bullish momentum may persist. On the other hand, when the Super Trend line turns red and appears above an asset’s price, bearish pressure is strong.
Additionally, the negative readings of SUNDOG’s Balance of Power (BoP) confirm the possibility of a price reversal in the near term. As of this writing, the meme coin’s BoP stands at -0.82 despite its price uptick.
This indicator measures the strength of buyers versus sellers in the market. A negative BoP suggests sellers are in control and attempting to push the asset’s price downward.
SUNDOG Price Prediction: If Retest Fails…
A combined reading of SUNDOG’s Super Trend and BoP indicators suggests that its breakout above the upper line of the falling wedge may occasion a bull trap when the retest attempt of the resistance line fails due to strong bearish sentiments in the market.
At press time, SUNDOG trades at $0.13. A reversal of its uptrend due to strengthening bearish pressure may see its price drop to $0.09, where support lies. However, if the uptrend persists, SUNDOG’s price may rally toward $0.20.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
PEPE Slips Into Correction: Here Are Key Levels To Watch For A Rebound
After a strong upward momentum, PEPE is showing signs of fatigue, slipping into a correctional phase, with traders speculating on what might come next. As the token retraces from recent highs, attention now turns to pivotal support levels that could dictate its recovery potential. Will these key levels hold the line and fuel a bounce-back, or is PEPE in for a longer dip?
This article will provide an in-depth look at PEPE’s current price movement within its correctional phase. By highlighting significant support and resistance levels, this piece seeks to equip investors and traders with valuable insights into possible rebound zones and the factors that could influence its recovery or further declines.
Understanding PEPE’s Correction: What Triggered The Pullback?
PEPE has recently taken a bearish shift on the 4-hour chart, encountering strong resistance at $0.00001152. This struggle to sustain the uptrend has triggered a decline, pushing the asset toward the 100-day Simple Moving Average (SMA). A drop below this SMA could amplify selling pressure, while a rebound might signal a potential price reversal.
An analysis of the 4-hour Relative Strength Index (RSI) suggests that bullish strength may be waning. Currently, the RSI has fallen to around 68% from the overbought zone, indicating that the buying pressure is diminishing. If the RSI continues to drop, it may indicate that the market is becoming more oversold, possibly paving the way for a deeper correction.
On the daily chart, PEPE is exhibiting significant negative movement, as reflected by a bearish candlestick. This ongoing downward trend highlights a prevailing selling pressure within the market. Although the meme coin is currently trading above the 100-day SMA, which is typically seen as a bullish indicator, the strength of the bearish candlestick suggests that upward momentum may be limited.
Finally, on the 1-day chart, the RSI signal line is approaching the critical 50% level after rising above it. The 50% mark represents a neutral zone, suggesting a balance between buying and selling pressure. A dip below 50% could signal a shift towards bearish sentiment, while holding above or climbing back above 50% may imply continued bullish strength, possibly leading to more price gains.
Where PEPE Could Find Stability
Key support levels are crucial price points where PEPE could find stability and reverse its current downtrend. One of the primary support levels to watch is the $0.000000766, which has historically acted as a crucial level of support. If PEPE’s price approaches this level, it could trigger renewed buying interest, potentially leading to a rebound.
However, should the meme coin break this level, it could lead to a prolonged decline, possibly pushing the price toward $0.00000589 and beyond.
Market
NEIRO All-Time High of $0.0025 Reached, Eyes Bigger Gains
The price of First Neiro on Ethereum (NEIRO) surged to a record high of $0.0025 during early Friday trading. Although it has since retraced, the meme coin still shows potential for further gains.
A combined analysis of NEIRO’s technical indicators and on-chain data suggests that investors might anticipate additional growth. BeInCrypto highlights that the altcoin’s current setup could pave the way for higher price targets in the near term.
First Neiro on Ethereum Bulls Take Charge
NEIRO’s whales or large holders have displayed confidence in its sustained growth by increasing their holdings over the past week. IntoTheBlock’s data has revealed a 266% uptick in the meme coin’s large holders’ netflow in the past seven days.
Large holders, defined as those controlling over 0.1% of an asset’s circulating supply, significantly influence market dynamics. The netflow of these investors tracks the difference between the amount they buy and sell over a given period.
A rising netflow indicates that whale addresses are accumulating more of the asset, signaling increased buying pressure. This accumulation trend is considered bullish, suggesting a potential price surge as demand outpaces supply.
Read more: What Are Meme Coins?
Further, NEIRO’s positive funding rate, which stands at 0.0075% as of this writing, reflects the bullish bias that the meme coin currently enjoys.
The funding rate is a mechanism used in perpetual futures contracts to maintain the contract’s price close to the spot price of the underlying asset. When it is positive, it indicates a high demand for long positions, as more traders are willing to bet on the asset’s price rising.
During a price rally, as in NEIRO’s case, a positive funding rate suggests that market sentiment is bullish, with traders largely expecting the price to continue climbing.
NEIRO Price Prediction: Profit-Taking Has To Stop
NEIRO is currently trading at $0.0023. Should the recent sell-off ease and renewed demand for the meme coin emerge, it could reclaim its all-time high of $0.0025 and potentially rally past it.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
However, ongoing profit-taking may push the token’s price further from this peak. Increased selling pressure could potentially make NEIRO’s all-time high unachievable in the near term. This could drive it down toward the support level, which would be formed at $0.0012.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
BlockFi Loses California License Over Violations, Unsafe Practices
The California Department of Financial Protection and Innovation (DFPI) has fully revoked the license of the bankrupt crypto lender BlockFi nearly two years after the company declared bankruptcy.
This decision comes as the final step in an investigation that began with the DFPI’s suspension of BlockFi’s operations in November 2022.
California DFPI Revokes BlockFi’s License
As part of a settlement, BlockFi agreed to give up its license, halt its unlawful practices, and stop engaging in activities deemed unsafe. This arrangement formally ends BlockFi’s presence in California’s lending sector, reinforcing the DFPI’s focus on safeguarding consumer interests.
The DFPI determined that BlockFi broke state financial regulations by neglecting to evaluate borrowers’ capacity to repay their loans and charging interest before actually providing loan funds. Moreover, BlockFi did not offer essential credit counseling to borrowers and failed to report payment histories to credit agencies.
“While we encourage innovation in our financial marketplace, companies must comply with laws and protect consumers in accordance with those laws to continue doing business in California,” DFPI Commissioner Clothilde V. Hewlett said.
Regulators also found that BlockFi inaccurately presented loan interest rates in its documents. As a consequence, the DFPI initially issued a $175,000 penalty for violations but later waived it, prioritizing consumer reimbursement due to BlockFi’s bankruptcy status.
BlockFi’s financial troubles had intensified since November 2022, following the downfall of Sam Bankman-Fried’s FTX, with which it had deep financial connections. Earlier that year, in July, BlockFi had extended a $400 million credit line to FTX US and held an additional $275 million loan with the exchange. This relationship positioned FTX as one of BlockFi’s largest unsecured creditors, putting further strain on BlockFi after FTX’s collapse.
In March 2024, BlockFi reached an $875 million settlement with the estates of FTX and Alameda Research. By July, the company had started distributing initial payouts to its creditors, facilitated through Coinbase. As of April 2023, BlockFi’s estimated liabilities ranged between $10 billion and involved more than 100,000 creditors.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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