In the ever-changing crypto market wave, one asset has caught attention with spectacular performance: the ME token from Magic Eden. In the last 7 days, ME surged by 55%, reaching a level of $0.32. What is driving this rally, and will its momentum continue?
📈 Impressive Technical Surge
The ME token is not only rising but jumping with high volume. In just 24 hours, its increase reached 38.6%, supported by trading volume exploding to $93.2 million. Technically, indicators are starting to reverse in support of the upward trend:
· RSI is recovering from the oversold zone (33–42), indicating room for further upside.
· MACD shows a bullish crossover signal on the daily chart, indicating potential long-term trend reversal.
· Major resistance is now at $0.40, while strong support is formed at $0.26–$0.28.
🚀 Factors Boosting Behind the Scenes
The spike in ME is not a coincidence. Several fundamental strategies and announcements are catalysts:
1. GIFTATHON 2026 – Magic Eden launches a social feature that allows users to send NFT gifts across blockchains (Solana, Bitcoin, Ethereum). This program is equipped with Pokémon-themed gift package incentives, creating high engagement.
2. Aggressive Buyback Program – 30% of platform fees are allocated to buy back ME tokens, with half of it (15%) permanently burned. This deflationary mechanism is immediately welcomed by the market.
3. Pivot to "Crypto Entertainment" – This platform strengthens its position with trading gamification and prediction markets, attracting more retail users.
4. Dominance in the Bitcoin Ordinals Market – Magic Eden holds 80% of the Ordinals market share, capitalizing on the recent wave of activity in the Bitcoin ecosystem.
🐋 "Smart Money" Movements and Risks to Watch Out For
On-chain analysis reveals that large players (whales) are in a profitable position:
· Long whales (72 positions) have an average entry at $0.261.
· Short whales (59 positions) could be liquidated if the price stays above $0.32.
However, investors should also be cautious:
· The buyback program heavily relies on NFT trading volume. If the NFT market fades, the deflationary effect could weaken.
· Community sentiment is very bullish (267 positive posts), yet the Fear & Greed Index remains neutral at 49.
🎯 Trading Strategy: Momentum or Trap?
For traders looking to enter, timing is key:
· Ideal entry on pullback to support zone $0.26–$0.28.
· Tight stop-loss below $0.24.
· Short-term profit target at $0.40, with the next target at $0.45–$0.50 if volume remains high.
🔮 Conclusion: Will ME Continue to Rise?
Token ME shows a rare combination of strong fundamentals, deflationary tokenomics strategy, and positive technical momentum. With dominance in the cross-chain NFT market and a pivot to an entertainment-based model, Magic Eden has the potential to continue attracting investor interest.
However, like other crypto assets, volatility remains high. Monitor volume, whale movements, and NFT market conditions to make informed decisions.
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