Popcat [POPCAT] witnessed a 17.8% decrease from its highest point at $1.485. Currently, it is being traded at $1.21, while Bitcoin [BTC] enthusiasts face challenges in breaking past the $64k mark.
The market turbulence on October 7 led to a bearish trend across the cryptocurrency space.
POPCAT was not exempt from this turbulence, causing a minor pullback. Despite the drop in value, the market structure and price direction remained decidedly optimistic.
Potential for Lower Prices Due to Fair Value Gap
The substantial price surge on October 4 created a fair value gap on the daily chart, ranging from $1.07 to $1.13.
Over the last 24 hours, the meme coin found support around the $1.15 level, but there could be a further decline in store.
Given BTC’s short-term bearish forecast, a move towards $1 appears more probable for Popcat. Although the daily price action and technical indicators showed a bullish stance.
The RSI remained above the 50 mark, indicating upward momentum. Despite this, the OBV flattened out in the past week, accompanied by low trading volume.
This lack of significant buying volume raised some concerns for the bulls, given the strong positive momentum.
Possible Formation of a POPCAT Price Range Above $1
The Social Volume exhibited an uptrend since mid-September, while the Weighted Sentiment remained positive.
This could potentially generate excitement around Popcat, leading to price advancements driven by positive sentiment.
The decrease in trading volume during October delivered a setback to bullish expectations, hinting at a possible delay before the market regains its upward momentum.
An analysis by CryptoCrypto based on liquidation heatmap provided insights into this scenario.
A concentration of liquidation levels near the $1.11 and $1.3 thresholds may act as price attractors. Once these levels are breached, there might be a reversal in the memecoin’s value stemming from these liquidity pools.
This could establish a temporary range for the meme coin.
Disclaimer: The views expressed are personal opinions and do not constitute financial, investment, or trading advice.