MEME.AI Price Under Contraction Eyes Breakout Run To $0.20

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The second week of March was notably bearish for the crypto market, as the leading digital plunged below the $70000 mark. The new correction sentiment took a significant toll on meme coins, including Meme.AI, which showcased an aggressive retracement in a 4-hour price chart.

From its new All time High of $0.04, the Meme.AI price plunged over 83% to form a low of $0.0065.

Source: Tradingview

Amid the recent memecoin Mania, the MEME.AI witnessed a massive inflow, pumping it to a new All-time High of $0.04. However, this rally was short-lived as the over-exhausted buying force and new correction phase in tandem Bitcoin price triggered a massive reversal.

The bearish downturn evaporated over the majority of gains the memecoin buyers accumulated in the last rally and plummeted the price below 78.6% FIB level at $0.009. Such a large degree of retracement usually indicates weakness in buyers’ conviction.

However, with a 58% jump in the last 48 hours, the MEME.AI price reclaimed the $0.009 support and developed a well-known reversal pattern called inverted head and shoulder.

Technical indicators:

MACD indicator: A bullish crossover between MACD(blue) and Signal(pink) hints at a renewed recovery in this asset. Thus, the chances of a recovery rally in the meme coin are on the rise.

Bollinger Band: With the ongoing correction, the meme coin is in the contraction phase. However, the recent reversal challenges the overhead Bollinger band, projecting a potential breakout rally.

EMA: A recent price jump above crucial EMAs(20, 50, and 100) reflects a bullish sentiment returning among traders.

Will MEME.AI Price Hit $0.20?

The MEME.AI coin currently trades at $0.013 and provided a bullish breakout of the inverted Head and shoulder pattern. Sustaining this break-out could push the coin price up 45% to hit the potential target of $0.0187. Thus, the chances of the MEME.AI price hitting the $0.20 psychological mark are on the positive side. 

If the breakout fails, the sellers may strengthen their grip and tumble the coin below $0.0065.