Two meme coins to watch as Bitcoin trades sideways

• Bitcoin remains range-bound, with support above $107,000 and resistance at $112,500.
• MemeCore surges over 38% to $1.32, shrugging off risk-off sentiment driven by macro uncertainty.
• Pump.fun breaks out, backed by multiple buy signals, as platform revenue skyrockets to $2.54 million.

Bitcoin (BTC) remains in a sideways trading pattern, extending between support above $107,000 and mid-week resistance at around $112,500. Risk-on sentiment has kept the majority of investors on the sidelines ahead of the United States (US) Federal Reserve’s (Fed) September interest rate decision. 

The central bank's direction of monetary policy would help shape sentiment for risk asset classes such as crypto and equities.

Meanwhile, investor interest is shifting to select meme coins, including MemCore (M) and Pump.fun (PUMP). Investors could seek refuge in these tokens during the current risk-off sentiment if Meme Core and PUMP sustain their rallies in the coming days.

Bitcoin risks further decline 

Bitcoin holds marginally below $110,000, down over 1.5% on Thursday. Short-term indicators suggest that the downtrend may extend toward the support level slightly above $107,000, which was tested on Monday and Tuesday. 

The Moving Average Convergence Divergence (MACD) indicator has confirmed a sell signal on the 4-hour chart, encouraging risk-off sentiment. The sharp decline in the Relative Strength Index (RSI) suggests that bullish momentum is fading as selling pressure intensifies. 

BTC/USDT 4-hour chart

MemeCore rallies as crypto majors wobble 

MemeCore is among the best-performing cryptocurrencies on Thursday, up over 38% to exchange hands at $1.37. Interest in the token began in late August after it struck a local bottom at around $0.36.

The path of least resistance is upward, underpinned by a maintained MACD buy signal since Friday. Although the Relative Strength Index (RSI) is extremely overbought at 84, the sharp move up reflects immense buying pressure. 

Still, traders should remain cautious in the event of a trend correction, possibly due to aggressive profit-taking, considering the dominant risk-off in the broader cryptocurrency market.

M/USDT 4-hour chart

Pump.fun surges as app revenue skyrockets 

Pump.fun price is trading at $0.0043, up over 7% at the time of writing on Thursday. The token, native to the meme coin launchpad, exhibits a solid bullish outlook, supported by growing platform revenues and multiple buy signals in the 4-hour timeframe.

If the MACD indicator maintains the buy signal, more investors will buy PUMP, increasing the likelihood of a strong rally despite the broader crypto market being suppressed by risk-off sentiment driven by macroeconomic uncertainty.

PUMP/USDT 4-hour chart

Profit-taking is an overhanging risk traders must consider when trading PUMP following the breakout. The RSI at 73 indicates overbought conditions, which are often a precursor to price correction. 

Pump.fun platform revenue has skyrocketed over the last few days following months of low activity in the meme coin sector. The meme coin launchpad generated a daily revenue of $2.54 million, up from approximately $206,000 on August 1.

Pump.fun revenue | Source: DefiLlama 

The surge in revenue could benefit PUMP as the network directs most of the funds toward token buybacks. Reducing the circulating while demand increases has the potential to trigger strong rallies in PUMP.