The price of Cat in a Dogs World (MEW) rebounded sharply on Monday morning as cryptocurrencies attempted to bounce back. The token jumped from a low of $0.00174 on Saturday and then rebounded to a high of $0.0050 on Monday.
Cat in a Dogs World rebounded
While it has soared by over 160% from its lowest point on Saturday, the token remains sharply lower than its all-time high. It is down by over 57% from its highest point this year, giving it a market cap of over $398 million.
Cat in a Dogs World is a relatively new Solana meme coin that is aiming to challenge dominant tokens like Shiba Inu, Dogecoin, Pepe, and Bonk.
Like other tokens, Cat in a Dogs World has gone through a rough patch in the past few weeks. Most of this retreat is because of the performance of Bitcoin, which has crashed from over $73,500 to about $65,000 today.
In most cases, meme coins and other altcoins tend to do well when the price of Bitcoin is in a spectacular rally. For example, the total market cap of all meme tokens surged to over $68 billion as Bitcoin rose to a record high of over $73,000 in March.
Another example is what happened during the weekend. Cat in a Dogs World plunged sharply as the price of Bitcoin neared the crucial support level at $60,000. It has now rebounded as Bitcoin moved above $65,000 on Monday morning.
Cat in a Dogs World and other meme coins like Bonk and Pepe are facing several risks ahead. First, Bitcoin has formed a triple top pattern, which is a popular bearish sign. As such, there is a likelihood that Bitcoin will retreat more in the coming weeks as investors sell the halving news.
Federal Reserve risks
Second, there are macro risks now that the Fed may not deliver as many rate cuts as initially expected now that inflation has remained above the 2% target for a while. Some analysts, including Larry Summers, believe that the Fed will hike rates.
US inflation could continue rising as geopolitical risks remain. Iran attacked Israel during the weekend, risking a wider conflict in the Middle East. Besides, the price of crude oil has surged to over $86 while the average gasoline price has moved to over $3.6.
There are also risks that the earnings season will not be great. Last Friday, JP Morgan’s stock price plunged by more than 6.47% on Friday after its earnings disappointed. Wells Fargo and Blackrock’s shares retreated after their earnings.
Therefore, there is a likelihood that the Cat in a Dogs World is having a dead cat bounce, meaning that it could retreat in the coming weeks. A dead cat bounce happens when an asset rebounds shortly after crashing hard soon.
