The Truth Behind ME's Plunge Revealed! Cause Analysis and Market Insights
Recently, many people have felt deeply disappointed by ME's decline. As a project that raised nearly 150 million and received investment from COINBASE, ME has a total issuance of 1.1 billion with only 130 million in circulation, but why has its performance been so poor since its launch? Before going live, ME opened pre-market trading and settlement contracts, allowing prior participants to acquire tokens in advance. Initially, ME soared to around 30, but quickly plummeted, hitting a low of about 3.6. This dismal performance reflects the tremendous selling pressure from early holders, and investigations revealed that a large amount of selling came primarily from retail investors, while the outflow from major players was relatively insignificant.
【Price Trend Analysis】
Candlestick Patterns:
The recent candlestick chart shows a clear downward trend, particularly between December 14 and 16, when the price fell from 4.205 to 3.748. The appearance of multiple long upper shadows and bearish candles indicates heavy market selling pressure.
Technical Indicators:
MACD: The current MACD is in the bearish zone, with both DIF and DEA showing negative values, and no signs of convergence have emerged, continuing to suggest ongoing downward pressure.
RSI: The RSI value is close to the oversold area (around 28). Although it hasn't fallen into extreme oversold conditions, there may be a demand for a rebound in the short term, but the overall trend remains weak.
EMA: EMA7, EMA30, and EMA120 show a clear bearish arrangement, with prices consistently below all moving averages, further indicating strong downward momentum. Additionally, EMA7 has formed short-term resistance against the price.
Trading Volume:
Since the significant drop on December 14, trading volume has gradually shrunk, with market participation noticeably declining and a strong wait-and-see sentiment prevailing. The continuous decrease in trading volume accompanying the price decline suggests that, although the downward momentum appears to be weakening, no clear signals of a bottom have yet been observed.