POPCAT [POPCAT] seems to have reached its lowest point after a 90% decline and wiping out almost all its gains made in 2024. In February, this memecoin has experienced a significant rally from its recent lows of $0.15.
This development has sparked optimism that it could regain lost ground and aim for the $1 mark. Nonetheless, whales have started to sell off their holdings to secure profits.
As indicated by SpotOnChain, a blockchain analysis platform, an early whale offloaded ten million POPCAT tokens valued at $3.15M to Bybit.
This whale managed to secure a profit of $7.32 million (a gain of 633%) and was left with only around one million POPCAT tokens.
Will Whale Profit-Taking Impede POPCAT’s Recovery?
On the daily price chart, POPCAT cryptocurrency defended the $0.20 threshold and rebounded steadily. Nevertheless, there are immediate resistance levels at $0.40 and $0.66.
As per the current data, it’s uncertain if the memecoin can push past the $0.40 mark. The daily RSI has recovered, but it has yet to establish support by crossing the neutral threshold.
Since December, the daily RSI has encountered resistance at this level, restricting the uptrend of POPCAT. If this pattern repeats, POPCAT might face a roadblock.
Furthermore, the OBV (On-Balance Volume) has been fluctuating below a crucial level, indicating stagnant volume, which might delay a robust prolonged rally in the short run.
If POPCAT encounters resistance at $0.40, a pullback to $0.30 (cyan) could present a favorable buying opportunity.
On-Chain Indicators Show a Rebound
Despite the above, the recovery in February also witnessed an improvement in essential on-chain indicators—sentiment and social volume.
Unlike December, when the Weighted Sentiment was firmly negative, in February, it displayed positive signals indicating a better market outlook for POPCAT.
Similarly, market interest and overall demand grew, evident from spikes in Social Volume. This reflected increased interaction with the memecoin on social platforms, which could lead to heightened demand on the price chart.
Nonetheless, unless anticipated demand propels the daily RSI above the neutral threshold, further recovery may stall in the near term.