Following a decrease mid-week, Popcat [POPCAT] has made a recovery with an impressive 11% increase in the past 24 hours, solidifying its position as one of the top performers.
Though Dogecoin [DOGE] leads the weekly charts with gains exceeding 30%, it only managed a modest 2% daily rise, significantly lagging behind its cat-themed counterpart.
This resurgence prompted analysts to delve into potential trends shaping the realm of meme coins.
Revealing a Critical POPCAT Approach
Fascinatingly, as Bitcoin [BTC] began its upward trajectory a week ago – marking the beginning of a bullish cycle that ended a four-month decline – POPCAT peaked at $1.50 on the same day.
Nevertheless, it struggled to maintain this momentum and is currently trading at $1.37, experiencing some notable setbacks along the way.
Meanwhile, DOGE, the primary meme coin by market capitalization, surged significantly by 30% to reach $0.15.
Clearly, investors have turned to DOGE as their preferred alternative coin, seeking to diversify beyond BTC to mitigate risks.
However, a report from analysts suggests that DOGE might be overheating and could be due for a correction soon. The increasing popularity of POPCAT could further bolster this trend, impeding DOGE’s progress.
Analysts unearthed a significant strategy employed by spot traders to influence the meme coin market.
Exactly a week ago, when POPCAT dropped to a low of $1.23 shortly after reaching its peak, traders withdrew a substantial amount of tokens – approximately $4 million – from exchanges.
This price level evidently acted as a target for a decline, marking the beginning of an intense accumulation phase.
Furthermore, these acquisitions capitalized on concerns surrounding DOGE’s recent slowdown. Despite DOGE registering a daily increase of over 7%, worries about overheating prompted traders to turn their attention towards POPCAT. Nonetheless,
A Shift in Trends is Possible
An analysis of POPCAT’s hourly price movements suggests that an impending breakout appears unlikely, with the MACD showing a bearish trend and RSI on the decline.
Nevertheless, this does not guarantee a reversal either. With ongoing accumulation and DOGE facing potential challenges, POPCAT may still continue its upward trajectory.
The rivalry between these two meme coins is intensifying, with traders keenly observing their next steps.
POPCAT has marked $1.23 as a bottom point, but a breakout could occur if funds transition from DOGE to POPCAT, especially following its substantial double-digit surge.
In the end, the meme coin market is a fierce competition, and only one contender will emerge victorious.