Posted: November 18, 2024

• CHEYENNE rallied to a record high of $0.0866 after being listed on the MEXC exchange. 
• Indicators suggest that buyers are becoming disinterested in buying the meme coin at current prices. 

The meme coin sector has garnered attention after Dogecoin [DOGE] surged to a three-year high. Small-cap meme coins have also outperformed the broader crypto market as retail traders ramp up buying activity to book profits. 

One of the newly launched meme coins making waves across the industry is Cheyenne (CHEYENNE). After hitting an all-time low of $0.00729 on 16th November, CHEYENNE rallied to a record high of $0.0866 one day later after being listed on the MEXC exchange. 

At press time, the Solana [SOL] based meme coin traded at $0.0562 with a market capitalization of $57 million. 

Is CHEYENNE’s rally losing momentum? 

Cheyenne had dropped by more than 30% in 24 hours at press time, an indication that sellers started booking profits after the meme coin reached an ATH. The surge in selling activity can be seen in its 15-minute chart. 

The Relative Strength Index (RSI) at 45 showed that a bearish momentum was in play due to rising selling activity. The RSI line had also tipped south and converged with the signal line. 

If the RSI line crosses below the signal line, it will flash a sell signal that could see CHEYENNE enter a downtrend.

The Moving Average Convergence Divergence (MACD), which is currently negative, also confirms the bearish thesis. The fading MACD histogram bars further show that buyers are becoming disinterested in buying the meme coin at current prices. 

If this bearish momentum continues, CHEYENNE could drop to test support at $0.049. Breaching this support could pave the way for further dips.

Conversely, if traders view the recent drop as a buying opportunity, the meme coin could rally to test resistance at $0.062. Going by past trends, whenever CHEYENNE has flipped this resistance, the price tends to make a strong rebound. 

Hype around SOL-based meme coins could revive momentum 

Data from CoinGecko shows that in the last 24 hours, the market capitalization of Solana-based meme coins has increased by more than 5% to $22.9 billion. 

dogwifhat (WIF) is the largest meme coin on Solana and has rallied by more than 20% in seven days. The other top gainers in the Solana meme ecosystem are BONK (BONK) and Peanut the Squirrel (PNUT). 

Data from DappRadar also shows that meme coin launchpad pump.fun has seen a notable uptick in activity after volumes hit a record high of $144 million.

The total transactions and user wallets on the platform are also at record highs of 2.72 million and 153,000, respectively. 

Given this hype around Solana meme coins, it is likely that CHEYENNE could rally further. However, traders should also watch out for further corrections if there is no fresh buying activity.