Popcat [POPCAT] witnessed a 6.3% increase in just one day and has experienced a notable 23.85% rise since hitting lows of $1.34 over the weekend. After a period of slowed momentum last week, this meme coin saw a resurgence in bullish activity during the weekend.
With Bitcoin [BTC] making a breakthrough from its descending trend and surpassing the $70k milestone, market sentiment turned notably bullish. While Popcat may continue its upward momentum, there is a chance of a pullback towards the $1.4 level.
Bulls Surpass Previous Peaks, Aiming for $2.5
Popcat has been establishing a pattern of higher highs and higher lows since the final week of August, maintaining an upward trajectory. While hovering below the $1.5 range currently, the token has convincingly broken out over the past five days.
On the daily chart, the RSI had dipped towards the 50 threshold but remained on the bullish side. In recent days, it has started to climb, showing no signs of bearish divergence yet. Additionally, the OBV surged past a key local resistance level.
Given the rising demand for this meme coin coupled with positive movements in Bitcoin’s price, further upward movement appears likely.
Having tested the Fibonacci extension level at $1.72 recently, it’s anticipated to be breached in the days ahead. This breakthrough would pave the way for the next bullish targets at $2.11 and $2.5.
Potential for a Short-term Correction in POPCAT Prices
Analysis of liquidation levels from the past week reveals that the $1.62-$1.72 range has been a strong point of attraction for prices. The recent bullish momentum over the past couple of days has brought POPCAT into this zone.
The subsequent liquidity support lies around the $1.4 mark. Presently, a significant drop seems unlikely as the price hasn’t reached an overextended state as of yet.
Traders are advised to tread cautiously, especially given Bitcoin’s proximity to its all-time high, which indicates potential high volatility in the market.
Disclaimer: The information shared is solely the author’s opinion and should not be considered as financial, investment, trading, or any other form of advice.