Cheyenne (CHEYENNE) Rally Loses Momentum as Sellers Book Profits

The meme coin sector has garnered attention after Dogecoin [DOGE] surged to a three-year high. Small-cap meme coins have also outperformed the

Meme coins on the Solana [SOL] chain have had a good run lately, with their total market cap increasing by 5.2% in the past 24 hours to reach $22.9 billion, according to data from CoinGecko.

This recent attention towards Solana meme coins has been driven by dogwifhat (WIF), the largest meme coin on Solana, which enjoyed a 19.8% surge over the past seven days. Other top gainers in the Solana meme ecosystem include Peanut the Squirrel (PNUT) and BONK (BONK).

Solana meme coin launchpad pump.fun also saw an uptick in activity, as volumes hit a record high of $144 million, according to data from DappRadar.

The total transactions and user wallets on the platform also reached new peaks of 2.72 million and 153,000, respectively, at the time of writing.

This renewed interest in Solana meme coins could bode well for Cheyenne (CHEYENNE), a Solana-based meme coin that rallied to a record high of $0.0866 on 16 November, following its listing on the MEXC exchange.

At press time, CHEYENNE was trading at $0.0562, down 31.3% over the past 24 hours, as sellers booked profits after the meme coin reached an all-time high (ATH). This surge in selling activity was also evident on its 15-minute chart.

The Relative Strength Index (RSI) stood at 45, indicating bearish momentum due to the rising selling activity, as the RSI line tipped south and converged with the signal line.

If the RSI line crosses below the signal line, it could flash a sell signal, potentially causing CHEYENNE to enter a downtrend.

Adding to the bearish narrative was the Moving Average Convergence Divergence (MACD), which remained negative, while the fading green MACD histogram bars showed that buyers were losing interest in purchasing the meme coin at its current price.

In such a scenario, CHEYENNE could drop to test support at $0.049. A breach of this support level could open the doors for further dips.

On the other hand, if traders viewed the recent dip as a buying opportunity, the meme coin could rally to test resistance at $0.062.

Past trends showed that whenever CHEYENNE flipped this resistance, the price tended to make a strong rebound.