$WIF: Is the Cat Finally Outperforming the Dogs in Meme Coin Race?

• MEW drops 22.36% after hitting $0.005744 peak, reflecting strong selling pressure.
• WIF declines 9.25% to $3.56, forming a bearish ‘lower highs’ pattern.
• MEW partners with LOCUS Animation to launch 3D series, boosting entertainment presence.

The price of CAT in a DOG’S WORLD (MEW), a memecoin built on the Solana blockchain, experienced a volatile swing on May 29.

After a significant 20% increase, MEW encountered resistance at an intraday high of $0.005744. This resistance triggered a correction, marked by a decline as selling pressure intensified. Initially, the price found temporary support around the psychological level of $0.005000, but this support soon gave way, leading to a more profound decline. 

MEW/USD 24-hour price chart (source: CoinMarketCap)

As of press time, the price had stabilized at $0.004431, reflecting a 22.36% drop from the day’s peak. Concurrently, the trading volume decreased by 14.56%, indicating strong seller participation and contributing to the downward price movement.

Market Sentiment and Outlook for MEW

The recent price decline and increase in trading volume suggest a shift towards bearish sentiment in the market. A sharp decrease in open interest by 23.45% indicates that many traders are closing their positions, likely due to uncertainty or losses. Long positions have incurred substantial losses, with $826.88K lost in the past 24 hours compared to $274.56K for short positions. 

Despite some traders positioning for a potential rebound, the overall market sentiment remains cautious. If selling pressure continues, further corrections are likely, though the current price level might offer new support for MEW.

MEW Derivatives Data

Despite the recent market downturn, MEW has partnered with LOCUS Animation Studio to create a new 3D animated series. This collaboration aims to elevate MEW’s status as a cat-themed Solana blockchain token and expand its presence in the entertainment and retail sectors. 

LOCUS, a South Korean studio known for its 3D animations and TV series, raised $17.5 million in pre-IPO investments last year and plans to go public early next year. The partnership is expected to help MEW capture the attention of a global audience by leveraging LOCUS’s expertise in digital media and, as a result, increase its competitive nature in the memecoin space.

Dogwifhat (WIF) Faces Resistance and Decline

Following a 5% surge, dogwifhat (WIF) encountered strong resistance at an intra-day high of $4.00, leading to a deep correction. The price chart shows a significant retreat from this peak, with a sharp initial decline indicating strong selling pressure. The subsequent price movements formed a ‘lower highs’ pattern, suggesting a bearish trend. 

WIF/USD 24-hour price chart (source: CoinMarketCap)

The price eventually dropped to $3.56, a 9.25% decline for the day. Increased trading volume by 34.69% during this decline suggests robust selling activity. The decrease in market cap by 9.25% further reflects the bearish sentiment.

Volume and Open Interest in WIF

The trading volume for WIF has decreased by 26.84%, indicating reduced trader interest. Open interest has also declined by 16.21%, suggesting traders are closing their positions, possibly due to profit-taking or loss mitigation. 

WIF/USD Derivatives Data

The ‘rekt’ data shows higher losses for long positions, with $352.34K lost in the past hour compared to $4.44K for short positions. This pattern persists over longer time frames, reinforcing the bearish outlook. Despite a mixed sentiment in the market, with some top traders maintaining a bullish stance, the broader market actions indicate caution. This suggests that while some traders may anticipate potential rebounds, the overall market sentiment remains cautious, with a clear trend of liquidating positions amidst ongoing price declines.