During the recent month, memecoins have experienced significant growth, and Popcat [POPCAT] has emerged as one of the top performers in the past 30 days.
Currently, Popcat is trading at $1.47, marking a 10.60% increase over the last week and a 41.80% gain on a monthly basis.
However, in the last 48 hours, there has been a notable downward trend, with the memecoin dropping from $1.68 to $1.47, reflecting a 12.5% decline over this short period.
This recent decline suggests a possible shift in market sentiment, leading to the question –
Is Popcat’s Upside Momentum Fading?
According to analysis by CryptoCrypto, Popcat appears to be losing its current momentum.
Specifically, the Directional Movement Index (DMI) for Popcat indicates a strengthening downtrend.
The -DI stands at 35.4, surpassing the +DI at 23, indicating that sellers are gaining control, potentially causing prices to drop or stabilize.
This configuration of the DMI typically signifies a downtrend or a trend moving towards one.
In addition, Popcat’s Relative Strength Index has declined from 65 to 57, while its Moving Average (MA) has risen to 59. This suggests a weakening momentum and hints at a possible reversal.
Another key metric to consider is the Advance Decline Ratio (ADR), which has remained below 1 for the past two days, currently standing at 0.71.
A value below 1 indicates more losses than gains, usually signaling a bearish sentiment with bears starting to dominate the market.
This shift in market sentiment is further substantiated by a notable increase in total liquidations. Long positions have witnessed a surge in liquidations over the last week, reaching a peak of $1.55 million in the past 24 hours.
The rise in liquidations for both long and short positions not only suggests increased volatility but also a lack of confidence in the market.
The reluctance of investors to pay higher fees to maintain their positions reflects their wavering conviction.
If the bears take charge, Popcat is likely to decline towards $1.2. Conversely, if the bulls regain control, the memecoin could break through the $1.5 resistance level and aim for a new All-Time High.