POPCAT has been showing an upward trend on the daily chart, hitting a higher low point at $1.28 on 25 October. While its momentum seemed to slow down at that point, it managed to reach a new peak in the following days.
The recent correction in Bitcoin [BTC] from $72.7k took many overly enthusiastic bulls by surprise. POPCAT also experienced a 14.45% decline over the past three days, but there is a chance it could continue its upward trajectory.
Market Conditions Favoring POPCAT Bulls
The 23.6% Fibonacci extension level was tested, leading to a subsequent correction. With higher highs and higher lows, the market structure has remained bullish. A daily close below $1.28 would signal a bearish shift in structure.
To shift the trend towards bearish territory, a new lower high followed by a lower low must be established. This sequence would indicate a potential pullback for POPCAT, possibly dipping below the $1 level.
Presently, the charts do not suggest this outcome. The CMF indicates a flow of capital into the market with a reading of +0.05. Additionally, the Awesome Oscillator has been reflecting bullish momentum in the meme-coin since the second week of September.
Declining Open Interest Raises Concerns
Following a bounce above $1.5 a week ago, Open Interest started to rise gradually. However, the recent correction that began on 30 October caused both the OI and price to drop, signaling bearish sentiment in the Futures market.
Concurrently, the spot CVD also underwent a significant decline during the same period. This dual decrease in interest from both Spot and Futures market participants indicates a bearish sentiment in the short term, even as the higher timeframe reflects a bullish stance.
The funding rate hovering near zero is another indication of weak bullish sentiment. Traders are advised to be cautious in the week ahead, especially with the 2024 U.S. elections introducing potential market uncertainty. Clarity in price trends may emerge once this significant event reaches a conclusion.
Disclaimer: The opinions expressed in this article are based on personal analysis and do not serve as financial, investment, or trading advice.