The "Cat in a Dogs World" (MEW) token has burst into action, rallying a significant 22% and successfully breaking out of a multi-month downtrend. This strong uptick propelled MEW to a two-month high of $0.00406, before settling slightly to $0.0039 at press time.
The impressive price movement was accompanied by a massive surge in market activity. Trading volume skyrocketed by a remarkable 522.9% to $284 million, while its market capitalization climbed 18% to $349 million. These increases typically signal growing on-chain activity and substantial capital inflow into the asset.
But the question remains: is this a fleeting speculative bubble or the beginning of a sustained uptrend for MEW?
Interestingly, the positive sentiment surrounding MEW has driven a significant influx of investors into the futures market, eager to capitalize on the token's next move.
Data shows that Open Interest (OI) jumped 57% to $48.36 million, while Derivatives Volume soared by an astounding 695% to $358 million. This tandem increase in OI and Derivatives Volume clearly indicates growing participation and conviction in MEW's futures contracts.
As a direct result, MEW's Funding Rate surged to a positive 0.0046, a notable flip from the negative rates observed the previous day. A positive funding rate signals higher demand for long positions, where traders are betting on price increases. This sentiment is further underscored by the fact that long positions accounted for 63.8% of total futures accounts, significantly outweighing the 38% held by short positions. This suggests that the majority of investors are aggressively betting on MEW's price to continue its ascent.
However, as "Cat in a Dogs World" gained momentum, so did the desire for underwater investors to cash out. Analysis of capital flows reveals a clear trend of holders rushing to realize profits.
According to CoinGlass, MEW has recorded two consecutive days of positive Exchange Netflow, indicating that more tokens are moving onto exchanges, presumably for selling. At press time, Netflow stood at approximately $1.57 million, an increase of $500,000 from the previous day.
While rising momentum indicators suggest the current uptrend is strong and likely to continue, the increased profit-taking poses a significant challenge. For the uptrend to be sustained, buyers will need to reclaim dominance and absorb the selling pressure. If successful, MEW could reclaim the $0.004 mark and potentially target $0.448.
Conversely, the sell-side risk is more pronounced than ever. If profit-taking continues at its current pace, downward pressure will intensify, potentially driving MEW back down to the $0.0033 support level. The coming days will be crucial in determining whether the cat continues to climb or if the dogs get their day back.
July 2025, Cryptoniteuae