The cryptocurrency market is regaining strength with Bitcoin and Ethereum gaining 5% over the past week. Meanwhile, memecoins like MEW and COQ are also showing upward momentum.
MEW: Breaking Out of the Falling Wedge
MEW has successfully broken out of a falling wedge pattern, typically seen as bullish. The token surpassed the upper trendline of the wedge around the $0.0018 range last week, signaling a shift in sentiment.
Following this breakout, MEW is currently trading around $0.0027, testing key resistance at the 50-day moving average and the $0.0033 price zone. If MEW maintains its bullish momentum, the next critical resistance lies around its 100-day MA and the $0.0046 price zone, which would represent a 70% increase from the current price.
The MACD indicator is also showing a bullish crossover, indicating increasing momentum in favor of buyers. However, if MEW fails to sustain its breakout, it may retrace to retest support levels before attempting another move higher.
COQ: Poised for Potential Breakout
COQ has been mirroring MEW’s price movement, also trading inside a falling wedge pattern since its $0.00000029 high on December 4. The token recently rebounded from the low of $0.00000060 and is currently trading at $0.00000075.
COQ is now approaching the upper resistance of the wedge while testing its 50-day moving average. A confirmed breakout followed by a retest could push the price towards the next resistance at the 100-day moving average and the $0.00000129 price zone.
If COQ follows MEW’s trajectory, a breakout could result in a significant upward move. However, failure to break above resistance may lead to further consolidation before another attempt at an upward move.
Final Thoughts
MEW’s recent breakout signals a renewed bullish sentiment in the market, and if COQ follows a similar pattern, it could be on the verge of a strong rally. Traders should monitor key resistance levels closely to confirm whether COQ will replicate MEW’s breakout and begin its own upward trend.
MEW and COQ are showing positive dynamics amid recovering sentiment in the cryptocurrency market. Observing key resistance levels will help confirm potential breakouts and further trends.
