After reaching a peak of $0.98 around a fortnight ago, Popcat [POPCAT] has faced considerable selling pressure leading to a decline to a recent low of $0.49. Nevertheless, in the last 24 hours, there are signs of a potential reversal in Popcat’s price trend.
As of the current moment, Popcat is being traded at $0.5581, reflecting a 2.29% rise in value within the past day.
Prior to these gains, Popcat had been on a downward trajectory, experiencing a decline of 30.56% in terms of weekly performance and 49.66% in monthly performance.
With modest gains recorded in daily trading, the key question now is whether Popcat can uphold this positive trend and prevent further losses.
Analysis of Popcat’s Price Charts
As per the analysis conducted by CryptoCrypto, the downward momentum of Popcat seems to be waning due to increased buying activity in the market.
Consequently, an upward momentum is beginning to form, accompanied by a shift towards positive market sentiment.
The observation of this upward strength was highlighted by a bullish crossover that emerged 48 hours ago. Additionally, the Stoch RSI has shown a crossover, suggesting a weakening current trend.
This indication is supported by the ADR remaining above 1 and spiking to 1.37. When the ADR surpasses 1, it indicates that current gains are starting to surpass losses, reflecting increased capital inflows.
Further analysis reveals a positive shift in Popcat’s market sentiment after a negative trend persisted for four days. Subsequently, the weighted sentiment turned positive around 48 hours ago.
This development points towards a rising positive view from market participants towards the memecoin and the potential for a reversal in its price.
In addition, there is currently a surge in demand for long positions in Popcat, with long position holders constituting 51% of the total positions.
When long positions dominate, it signals that the majority of investors are optimistic and anticipate price increases.
This demand is bolstered by a positive Funding Rate aggregated by exchanges, which has been consistently positive over the past week. This implies that traders are willing to pay a fee to maintain their trades during market downtrends.
With optimistic sentiments infiltrating the market, Popcat needs to hold above the $0.55 support level. Maintaining this level could prompt an attempt to reclaim the $0.82 threshold.
However, if this level is breached, it may push prices downwards towards $0.43.