Popcat [POPCAT] witnessed a 6.3% increase in just one day and has surged by 23.85% from its low point on Saturday at $1.34. After a brief slowdown last week, this meme coin experienced a revitalization over the weekend.
With Bitcoin [BTC] breaking out of a descending trend and surpassing the $70k mark, market sentiment turned overwhelmingly bullish. While Popcat’s upward momentum could continue, there is a possibility of a correction towards the $1.4 level.
Bulls Surpass Previous Highs, Targeting $2.5
Popcat has been establishing higher highs and higher lows since late August, maintaining a steady uptrend.
Although it consolidated below the $1.5 range recently, it managed to break out convincingly over the past five days.
On the daily chart, the RSI initially dropped towards the 50 level but remained in bullish territory. Recent days have shown an upward push with no signs of bearish divergence yet. Additionally, the OBV surpassed a local resistance level.
The growing interest in the meme coin, coupled with Bitcoin’s positive price action, indicated the potential for further price increases.
Recent testing of the Fibonacci extension level at $1.72 is likely to pave the way for breaking through this level in the upcoming days. This could lead to the $2.11 and $2.5 levels becoming the next key targets for the bulls.
Possible Short-Term Correction for POPCAT
Analysis of liquidation levels from the previous week revealed that the $1.62-$1.72 range acted as a significant price magnet. The recent bullish momentum has propelled POPCAT towards this zone.
The next critical liquidity support lies around the $1.4 mark. Although a drop to this level is currently unlikely due to the price not being excessively overbought, traders are advised to exercise caution, especially given Bitcoin’s proximity to its all-time high and the anticipated increase in volatility.
Disclaimer: The views expressed here are solely the author’s opinion and should not be considered as financial, investment, or trading advice.