- Short-term bias was extremely bullish and potentially overextended.
- A break above the $0.33 level could see another 25% upside.
Sundog (SUNDOG) has had a remarkable run of gains over the past few days. Since Friday, August 23, SUNDOG is up 84% at the time of writing and continues to rise. Technical indicators have also been bullish.
Since August 18, the meme coin has gained almost 700%. Breaking through the highs of the $0.262 range was a key development for the token.
Sundog reaches the next Fibonacci extension level in the blink of an eye.
Source: SUNDOG/USDT on TradingView
Since Wednesday, August 21, SUDOG has been stuck below the $0.264 resistance level. It has formed a range (pink) with a low at $0.176. In the last 24 hours, the bulls of the meme coin have been on the front foot.
The RSI on the 2-hour chart was at 71, indicating that overbought conditions were ripe. This alone does not guarantee a price decline. However, the CMF was also high at +0.47.
Additionally, the token was at the 23.6% Fibonacci extension level, which could act as resistance and push the price lower.
Potential for additional profits despite the high conditions
Source: Coinglass
The open interest chart showed a huge surge in speculative activity, with the open interest price spike and price range high breakout highlighting very strong bullish momentum.
Realistic or not, here is SUNDOG’s market cap in BTC terms.
High readings on the CMF and RSI signal a potential top, but the new meme coin’s momentum could easily push it to new highs.
To the north, the next Fib extension targets were $0.418 and $0.5. If the session closes above $0.329, these levels are likely to be retested.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.