Recently, meme-based cryptocurrencies have shown impressive growth. Notably, Popcat [POPCAT] has emerged as a standout performer in the last month.
Currently, Popcat is being traded at $1.47, showcasing a 10.60% rise in the past week and an impressive 41.80% increase in the monthly analysis.
Nevertheless, the last 48 hours have seen a notable downturn, with Popcat’s value dropping from $1.68 to $1.47, reflecting a 12.5% decrease over the past two days.
This significant downtrend hints at a potential shift in market sentiment, prompting the question –
Is Popcat’s Positive Trajectory Losing Steam?
According to an analysis by CryptoCrypto, Popcat appears to be losing its momentum.
Noteworthy is Popcat’s Directional Movement Index (DMI), indicating a strengthening downtrend.
Specifically, the negative index -DI at 35.4 surpassed +DI at 23, highlighting a growing dominance of sellers, leading to price declines or stagnation.
This configuration of the DMI typically signals either an ongoing downtrend or an imminent one.
Furthermore, Popcat’s Relative Strength Index has dropped from 65 to 57, while its Moving Average, currently at 59, has increased. These trends suggest a weakening momentum with a possible reversal on the horizon.
Another crucial metric to consider is the Advance Decline Ratio (ADR), which has consistently remained below 1, settling at 0.71 over the past two days.
A reading below 1 in ADR signifies more losses than gains, often indicative of bearish sentiment and potential domination by bears.
This shift in market sentiment is reinforced by the surge in total liquidations. Long position liquidations spiked over the last week, hitting $1.55 million in the latest 24-hour period.
Heightened liquidations for both long and short positions not only point to increased volatility but also reflect a lack of confidence in the market.
The reluctance of investors to pay premium fees to maintain their positions underscores a wavering conviction.
If the bearish trend persists, Popcat could decline to $1.2. Conversely, a resurgence of bullish sentiment could propel the memecoin to break the $1.5 resistance level, potentially reaching a new all-time high.