The well-known meme token Popcat [POPCAT], which is based on the Solana blockchain, is creating a buzz in the digital currency arena with its remarkable price momentum, capturing the attention of large investors and whales.
On October 14th, Lookonchain, a blockchain-powered transaction monitoring platform, shared a post revealing that a substantial whale had purchased $1.94 million worth of POPCAT from Binance, the largest cryptocurrency exchange globally.
Whale Accumulates 1.38 million POPCAT tokens
As per the aforementioned post, this whale obtained a notable 1.38 million POPCAT tokens at an average price of $1.41. This significant acquisition underscores the whale’s confidence in the meme token, hinting at a possible bullish rally for POPCAT in the near future.
Nevertheless, this sizable purchase comes after the divestment of $4.44 million in the prominent meme coin Dogwifhat (WIF). Previously, this whale had invested in WIF but incurred losses of $4.4 million. The shift to POPCAT now may be attributed to its impressive recent performance.
POPCAT Analysis and Crucial Levels
According to technical analysis by CryptoCrypto, POPCAT is currently following an upward trajectory but undergoing a correction in price post a substantial 30% surge.
However, the daily chart displays a bullish three-white soldier candlestick pattern for the meme token, indicating a potential upward movement in the days ahead.
An examination of POPCAT’s daily chart suggests the possibility of a minor price correction before witnessing a significant bullish rally.
Given its historical price action, a daily candle closure above the $1.56 threshold may pave the way for a new all-time high for POPCAT in the foreseeable future.
Optimistic On-Chain Indicators
This optimistic forecast is bolstered by on-chain metrics. Coinglass, an on-chain analytics company, reports that POPCAT’s Long/Short ratio currently stands at 1.30, reflecting a strong bullish sentiment prevailing among traders.
Moreover, the future open interest has decreased by 10.5% over the past 24 hours, indicating more liquidations than new positions being established during this period.
Among the top traders, 56.5% are holding long positions, while 43.5% are holding short positions at present.
As of the latest data, key liquidation levels are identified at $1.348 on the lower end and $1.399 on the upper end, with traders showing high leverage at these points, according to Coinglass.
An upsurge to the $1.399 level could trigger a liquidation of nearly $1.62 million in short positions, whereas a drop to $1.348 might lead to liquidation of approximately $2 million in long positions.
The data indicates a prevailing bullish sentiment with expectations of a surge in POPCAT’s value in the coming days.
At present, POPCAT is trading around $1.36, having witnessed a decline of over 7.55% in the past 24 hours. During this period, trading volume has surged by 40%, suggesting increased involvement from traders and investors likely due to the recent price decline.