Unlike the majority of meme-based cryptocurrencies, Popcat [POPCAT] has displayed remarkable price fluctuations during the post-election period.
A mere two months earlier, POPCAT surged to $1, surpassing its rivals by a significant margin. Although it didn’t attract the same level of investment in November, it shouldn’t be dismissed just yet.
Despite recent challenges, POPCAT has risen to become the 8th largest memecoin in terms of market capitalization. Additionally, it recently surpassed another token that experienced an 80% spike last month.
With the gap between the two tokens narrowing, could POPCAT be on the verge of a substantial rally towards an all-time high of $2? What are the chances?
The Importance of Intense Accumulation
A substantial portion of the gains that POPCAT achieved during the initial phase of the election rally, leading to a new all-time high of $2.08 within two weeks, were wiped out due to considerable profit-taking. At present, the token is valued at $1.50 (at the time of writing).
Notably, POPCAT is the sole token among the top 10 meme-coins to have experienced a decline in the 30-day percentage surge.
However, a closer examination reveals signs of recovery in POPCAT over the past seven days, surpassing rivals with a 13% increase and a neutral RSI, hinting at potential momentum for a rebound.
Nevertheless, there’s a catch. In the middle of November, POPCAT encountered substantial resistance at its current valuation, prompting a setback to around $1.20. Clearly, the meme-token is at a critical juncture.
To avoid a recurrence of past events, maintaining the $1.50 level as a strong support is crucial.
The withdrawal of approximately $2 million worth of POPCAT tokens by spot traders, represented by the red candlestick, suggests a positive outlook and indicates that the current price range is seen as a possible bottom by the market.
However, ongoing monitoring of this metric in the days ahead is essential to gauge the market’s response to the current price. Should the bottom hold, a potential rise to $2 might be on the horizon.
Nevertheless, the Risks Inherent in POPCAT Persist
From the analysis above, it is evident that the recent price movements of POPCAT are largely speculative, with erratic fluctuations indicating significant investor apprehension, all in pursuit of quick and substantial returns in a short period.
Without a stabilizing factor to mitigate this volatility, forecasting a smooth path for POPCAT to reach $2 poses a significant challenge, irrespective of the overall bullish sentiment in the broader market.
Here’s where the concern lies. As per a recent report by CryptoCrypto, whale addresses holding 100K+ POPCAT have notably reduced their holdings over time, while smaller holders have maintained their positions.
This trend signifies declining confidence among major players, which could pose a threat to POPCAT’s long-term growth prospects, further delaying its attainment of an all-time high.
Therefore, unless there’s a reversal in this trend, while POPCAT may continue to attract speculative interest, the absence of robust fundamentals to guide its long-term trajectory leaves its future uncertain.