Despite Bitcoin [BTC] reaching a new all-time high and the overall crypto market showing a strong price recovery, some altcoins are struggling to keep up. Popcat [POPCAT] is among those altcoins that have faced a significant drop in value in the past week.
As of the current moment, Popcat is being traded at $1.51, reflecting a 2.17% decrease in the last day and a notable 8.55% decline over the past week.
Previously, the memecoin was on an upward trajectory, enjoying a 23.14% surge in value on a monthly basis. After hitting a low of $0.9, the memecoin saw a substantial upward trend, reaching $1.8.
However, the recent downward movement has led many analysts to predict a possible further decrease in value.
Market Analysis and Trends
In his assessment, cryptocurrency analyst Man of Bitcoin suggested that Popcat’s prices have responded to the wave 4 support region of the Elliott wave theory.
This indicates that Popcat seems to be finding support at wave 4, which typically represents a corrective phase. If the memecoin manages to find stability at this level, it might signal the end of the recent decline and a potential return to an upward trajectory.
As per the analyst’s observation, a sustained breakthrough above the high of wave 3 would serve as confirmation that wave 5 is currently unfolding.
This scenario implies that if Popcat surpasses wave 3, it could mark the conclusion of the correction phase and pave the way for wave 5, indicating a continuation of the uptrend.
However, the analyst cautioned that wave 4 tends to be a prolonged phase that requires time to complete. Thus, even if there is a potential upward movement, it might be part of a more extensive wave 4 correction process.
Under such circumstances, the apparent upward progression seen during wave 3, signifying the end of wave 4, could result in further correction as wave 4 is intricate and involves other patterns such as zigzags.
Hence, a failure to breakthrough beyond wave 3 would suggest that the price is still undergoing a correction phase, indicating that Popcat might experience additional decline before attempting another uptrend.
Is Popcat Heading Towards Further Decline?
Based on the Elliott wave analysis, it is possible that the memecoin could encounter a significant dip before seeking another upward movement.
Observing the recent price patterns, Popcat is currently facing strong bearish sentiment, particularly in the short term.
Therefore, if the current market conditions persist and bears maintain control, Popcat is expected to seek support around $1.38. A break above this level could signal the initiation of Wave 5, testing the resistance level at $1.7.