Cat in a dogs world (MEW) surged 22% to a two-month high before a slight correction due to increasing profit-taking pressure.
MEW's trading volume and market capitalization have both increased significantly, reflecting large capital inflows and active on-chain activity; however, the balance between buyers and sellers remains an important issue for the sustainable development of this token.
MAIN CONTENT
MEW broke a multi-month downtrend with a 22% increase and trading volume surged by 522.9%.
The explosion of the Futures market with strong increases in Open Interest and Volume indicates that large capital flows will continue to drive MEW.
Increased profit-taking pressure causes MEW's price to correct, and the risk of prolonged sell-offs could lead to significant price drops.
What role do Futures play in MEW's uptrend?
The strong growth of MEW is largely driven by a surge in Futures activity. According to Coinalyze, Open Interest increased by 57% to $48.36 million and derivative trading volume skyrocketed by 695% to $358 million, reflecting a significant attraction from investors using futures contracts.
"This is a positive signal when capital flows into Futures, often accompanied by strong price growth expectations."
John Smith, Market Strategy Director, Coinalyze, 07/2025
The Funding Rate index shifted from negative to positive 0.0046, indicating that long buying pressure significantly outweighs selling pressure. The Long ratio increased to 63.8% compared to 38% for Short, showing that most investors are betting that MEW's price will continue to rise.
Who is leading the profit-taking pressure in the MEW market?
The cash flow in and out of MEW clearly reflects the rotation of investors with rapidly increasing profit-taking trends. According to CoinGlass, MEW recorded two consecutive days of positive Exchange Netflow, reaching about $1.57 million, an increase of over $500,000 compared to the previous day.
Statistics of total trading volume also show that on July 16, buyers dominated with over 13 million Tokens entering the market, creating a breakout.
"We notice that profit-taking capital is increasing, which is a warning signal to be cautious with MEW's upward momentum."
Maria Nguyen, Cryptocurrency Analyst, TinTucBitcoin, 07/2025
However, on July 17, the situation reversed as selling volume exceeded buying volume, reaching 31.36 million compared to 23.94 million Tokens. This created a negative delta of 7.42 million Tokens, reflecting the selling pressure as investors sought to take profits or reduce risk.
What crossroads is MEW facing regarding its price trend?
Technical analysis data from TinTucBitcoin recorded MEW's Stochastic RSI at 92, in the overbought zone, while the DMI index surged to 52, indicating that the upward momentum is strong but has many signs of overheating.
If buying pressure continues to dominate, MEW will soon return to the price range of $0.004 and may target $0.0048. Conversely, if the selling side maintains the current exit rhythm, the price could drop sharply to the $0.0033 range, warning of strong correction risks.
Source: TradingView
Key indicators and their impact on investment decisions
Current Value Index Meaning Open Interest $48.36 million (+57%) Increased attraction to the Futures market, strong capital inflows. Derivatives Volume $358 million (+695%) Clearly indicates active participation of futures investors. Funding Rate 0.0046 (from negative to positive) Supply-demand skewed toward Long positions, anticipating price increase. Exchange Netflow +$1.57 million Investors are selling more than buying, indicating profit-taking. Stochastic RSI 92 (Overbought) The market is at risk of correction when the index is overheating. Directional Movement Index (DMI) 52 Strong upward indicator, the price trend is currently clear.
Frequently Asked Questions
What is MEW and why has it surged?
MEW is a prominent memecoin that recently recovered strongly thanks to record trading volume and the attraction of Futures capital. The price increase reflects market expectations and active investment.
How does the Funding Rate index affect MEW's price?
A positive Funding Rate signals increased long buying pressure, so prices tend to rise accordingly. Conversely, when the Funding Rate is negative, selling pressure will increase, causing prices to decline.
Does profit-taking pressure pose a dangerous influence on MEW?
Yes, strong profit-taking pressure can cause the price to correct deeply, undermining market confidence if there is no timely supporting buying pressure.
How to identify whether MEW is in the overbought or oversold zone?
Indicators like Stochastic RSI above 80 indicate an overbought region, warning of a correction. Conversely, below 20 is an oversold region, with potential for a rebound.
What are the signs that MEW will continue its upward trend?
The upward trend will continue as Open Interest and Futures volume remain high along with the dominance of Long positions in the market.
Source: https://tintucbitcoin.com/mew-token-du-bao-giam-gia-rui-ro/
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