Simon’s Cat token (CAT) recently entered a phase of price discovery, achieving a new all-time high of $0.0000464 on September 21. The meme-based cryptocurrency witnessed a significant surge before showing a slowdown following a breakout from its short-term upward wedge pattern.
Presently, CAT is trading at $0.0000391, experiencing a 6.5% decline over the past 24 hours after a bearish breakout.
Simon’s Cat price outlook: Can RSI Trigger a Short-Term Uptrend?
Like many meme coins, CAT encountered a surge shortly after its launch, fueled by considerable investor enthusiasm. This enthusiasm led to a doubling of CAT’s value in a little over two weeks.
Despite the recent deceleration, CAT’s Relative Strength Index (RSI) displayed initial signs of a bullish divergence. While the price reached higher highs, the RSI registered lower lows.
This divergence often indicates a potential shift in momentum, potentially offering buyers a brief rally before another pullback.
If this bullish divergence materializes, CAT may rebound towards the $0.000041 resistance level and potentially revisit its all-time high levels in the upcoming sessions.
Conversely, the recent breakout from the rising wedge pattern increases the chances of a further pullback. If selling pressure persists, CAT could find support at $0.0000352 and $0.0000308 before aiming for a recovery.
The RSI hovered near 45, significantly below its moving average line, signaling a momentum shift favoring sellers.
The MACD indicator displayed a bearish crossover, with the MACD line dipping beneath the signal line. This crossover commonly marks the beginning of a short-term bearish phase. A further drop below the zero level by these lines would confirm a more pronounced downtrend.
What Lies Ahead
Simon’s Cat (CAT) faces a critical juncture post its all-time high achievement and subsequent retreat from the rising wedge breakout. While the bullish divergence on the RSI hints at a potential short-term upswing, traders need to exercise caution given the weakening momentum confirmed by technical indicators like the MACD.
A breach above $0.0000405 could revive bullish sentiments, propelling the price towards $0.0000464. Conversely, a continued downturn might test support at $0.0000352 and $0.0000308.
Traders are advised to vigilantly track these crucial levels along with the broader market sentiment to seize opportunities accompanying CAT’s next move.