Popcat, a popular meme coin based on Solana [SOL], is capturing attention in the realm of digital currencies due to its remarkable performance.
Nevertheless, recent days have seen Popcat struggling to maintain momentum, facing a price adjustment along with prominent cryptocurrencies such as Bitcoin [BTC] and Ethereum [ETH].
Positive Momentum for POPCAT
At present, POPCAT is displaying positive signs, evident by the formation of a bullish double-bottom pattern on the daily chart.
Following a rapid price increase of more than 35% within just three days, POPCAT has retraced to its initial range, where it has observed a notable price surge, hinting at the emergence of a bullish pattern.
Considering its previous price movements, if POPCAT manages to stay above the $1.1735 threshold, there exists a strong likelihood that it could witness a 22% jump to hit the $1.5 mark in the near future.
Conversely, a failure to sustain this level and a daily candle closing below $1.1735 might lead to a notable drop in price.
Supporting the optimistic outlook for POPCAT is on-chain analysis provided by Coinglass, which highlights a 3.9% increase in Open Interest over the past 24 hours, signaling rising interest from traders in this meme coin.
Notable Liquidation Thresholds
Presently, the crucial liquidation levels for POPCAT are approximately $1.168 on the downside and $1.259 on the upside, with data from Coinglass indicating that traders are heavily leveraged at these levels.
If current market sentiment persists and POPCAT’s price surges to $1.259, it could lead to the liquidation of nearly $2.56 million worth of short positions.
In contrast, if sentiment shifts and the price dips to $1.168, over $4.01 million worth of long positions could face liquidation.
By combining these on-chain indicators with technical analysis, it appears that bulls are currently in control of the asset and may trigger the liquidation of short positions, potentially resulting in a significant upward surge in the days ahead.