MAMO Faces a Setback After Coinbase Launch: Is the Momentum Waning?

MAMO, the cryptocurrency that soared over 120% in a week, experienced a significant drop shortly after its debut on Coinbase. This article explores the factors behind the price drop, potential recovery signals, and market sentiment surrounding the token.

Key Takeaways

MAMO surged over 120% before dropping nearly 20% shortly after launching on Coinbase.
The token remains over 63% up for the week and 1,300% since its launch.
Increased trading volume indicates traders are taking profits in response to the price drop.
Recent exchange listings could provide MAMO with greater market credibility and accessibility.
Key indicators suggest possible bullish momentum, despite the recent pullback.

MAMO crashes after Coinbase debut despite 120% weekly surge — is the run out of steam?

MAMO's Price Drop

MAMO, which recently debuted on Coinbase, saw a dramatic decline following a week that saw it rise over 120%. As reported by crypto.news, MAMO hit an all-time high of $0.227 on August 7 before experiencing a drop of nearly 20% under selling pressure. Nevertheless, the token is still up by more than 63% this week and has skyrocketed over 1,300% since its launch in May.

In the last 24 hours, MAMO's trading volume increased by over 150% amid this price decline, suggesting that many traders opted to exit their positions and secure profits from the recent price spike before the Coinbase launch. It's common for cryptocurrencies to experience initial sell-offs following an exchange listing, particularly after reaching an all-time high, as early adopters often cash out to lock in gains.

There is reason for optimism, though, as bullish investors might view the recent price dip as a buying opportunity to accumulate MAMO at lower levels. Currently, MAMO is trading above its intraday low of $0.171, showing some signs of recovery from the recent losses.

Factors Supporting Potential Recovery

Several bullish factors could indicate a trend reversal for MAMO.

Exchange Listings: Over the past week, MAMO secured two important exchange listings. The Coinbase listing adds credibility among U.S. investors, while the earlier CoinEx listing enhances its accessibility to international markets. Listings on prominent exchanges typically result in increased retail access, improved market depth, and heightened investor confidence, particularly in compliance-focused markets like the U.S.
Whale Accumulation: Recent data from Nansen indicates strong whale accumulation, with large holders increasing their MAMO balances by 16.5% in the past week, raising their total holdings to 2.41 million tokens. This pattern suggests that wealthier entities anticipate further price increases and are positioning themselves accordingly.
Decreased Supply on Exchanges: The supply of MAMO available on exchanges has decreased by 10.5% in the same period, now totaling 27.7 million tokens. A decrease in exchange balances often implies that traders are moving tokens into long-term storage, reducing the sell-side liquidity. If demand continues to rise, this can create upward price pressure, supporting a potential recovery.

If the market sentiment remains favorable and liquidity continues to increase, MAMO may attempt another breakout beyond its recent all-time high.

Technical Indicators

On the daily chart, MAMO is situated above both the 20-day and 50-day simple moving averages, indicating that its current upward trend may continue. These moving averages serve as dynamic support levels, and MAMO's ability to stay above them suggests ongoing bullish momentum.

The MACD (Moving Average Convergence Divergence) indicator also supports this outlook. The MACD line has crossed above the signal line, accompanied by expanding green histogram bars, reflecting increasing bullish momentum and possible continuation of upward price action.

Conversely, the Relative Strength Index (RSI) has retreated to a reading of 64 after surpassing 70 previously, indicating an overbought situation. While the current downward trend in RSI indicates cooling momentum, it remains in neutral-to-bullish territory.

Future Price Movements

As of this writing, MAMO is trading near the 78.6% Fibonacci retracement level, which is measured from its recent high to the local swing low. A successful rebound from this level could support a continued bullish trend, leading traders to retarget the all-time high. If a confirmed breakout occurs in this zone, it could lead to new price discovery, with the next psychological resistance level around $0.25 marking a potential upside target.

On the other hand, should MAMO fall below the 61.8% Fibonacci retracement level, the bullish setup may be invalidated. In such a case, increased selling pressure could drive the token towards the psychological support level of $0.10, especially if market sentiment weakens.

Conclusion

This article does not offer investment advice but serves to educate readers on the current state of MAMO's market performance. With significant volatility and potential for recovery, investors should approach the situation with caution and perform thorough research before making any trading decisions.