Solana-based meme coin Cats in a Dog’s World (MEW) soared to a new all-time high of $0.011 today, driven by a 12% price increase over the past 24 hours. 

However, with market conditions heating up, signs of buyer exhaustion are emerging, and a price correction may be on the horizon. This analysis outlines key price targets that MEW holders should monitor as the potential pullback looms.

cats in a dogs world Buyers May Soon Witness Exhaustion

MEW briefly surged to a new all-time high of $0.01066 on Thursday before experiencing a slight pullback. As of this writing, the meme coin is trading at $0.01056, down 2% from its peak.

While the rally has brought gains for many holders, BeInCrypto’s analysis of the MEW/USD 12-hour chart suggests a potential short-term price correction. A key indicator of this is MEW’s overbought condition, as reflected by its Relative Strength Index (RSI), which currently sits at 72.73.

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This indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a correction. On the other hand, values below 30 indicate that the asset is oversold and may soon witness a rebound.

MEW’s RSI reading of 72.73 signals that it is overbought. It hints at potential buyer exhaustion and suggests the likelihood of a price pullback in the short term as traders start to sell to lock in profits.

Additionally, MEW’s plummeting Chaikin Money Flow (CMF) confirms this rise in profit-taking activity among market participants. As of this writing, MEW’s CMF rests below its zero line at -0.02.