Amidst the ever-evolving landscape of digital assets, the Solana-based meme token Popcat [POPCAT] has emerged as a prominent player, garnering attention from both large-scale investors and retail traders.
Recently, on the 14th of October, Lookonchain, a blockchain transaction monitoring platform, disclosed a significant development. A substantial whale made a noteworthy purchase of POPCAT tokens to the tune of $1.94 million on Binance, the world’s leading cryptocurrency exchange.
Whale’s Acquisition of 1.38 Million POPCAT Tokens
As per the data shared by Lookonchain, the whale in question acquired an impressive 1.38 million POPCAT tokens at an average price of $1.41. This substantial investment not only underscores the investor’s confidence in Popcat but also hints at a potential upward surge in the token’s value in the near future.
However, this sizable transaction comes on the heels of a $4.44 million sell-off of another meme coin, Dogwifhat (WIF). The whale had previously ventured into WIF, incurring losses amounting to $4.4 million before shifting focus towards POPCAT, possibly enticed by its recent strong performance.
POPCAT Technical Analysis and Critical Levels
According to insights from CryptoCrypto’s technical analysis, POPCAT is currently riding an upward trend, albeit amidst a 30% surge followed by a corrective phase in its pricing.
On closer examination of the daily chart, an optimistic signal emerges in the form of a bullish three-white soldier candlestick pattern, indicating a forthcoming rally for the memecoin.
An in-depth evaluation of POPCAT’s daily chart suggests a potential minor correction before witnessing a substantial surge in value. Should POPCAT manage to close a daily candle above the $1.56 mark, the likelihood of achieving a new all-time high in the days ahead is significantly high.
Bullish On-Chain Indicators
Further reinforcing the optimistic outlook are on-chain metrics. Coinglass, an on-chain analytics provider, reports that the Long/Short ratio for POPCAT presently stands at 1.30, indicative of a prevailing bullish sentiment within the trading community.
Moreover, there has been a 10.5% decrease in future open interest over the last 24 hours, signaling more positions getting liquidated than established during this period.
At present, 56.5% of prominent traders hold long positions, while 43.5% are inclined towards short positions. Notably, liquidation thresholds are pegged at $1.348 and $1.399, with traders exhibiting over-leveraged positions at these points, as per Coinglass data.
If market sentiment continues to favor bulls and the price surges to $1.399, an estimated $1.62 million worth of short positions will face liquidation. Conversely, a shift towards bearish sentiment could lead to liquidation of approximately $2 million worth of long positions if the price dips to $1.348.
These statistics suggest a prevailing bullish sentiment with the anticipation of a notable upward trajectory for POPCAT in the days ahead.
As of the latest data, POPCAT is trading around $1.36, reflecting a decline of 7.55% over the past 24 hours. Notably, trading volume has recorded a 40% surge within the same timeframe, possibly indicating heightened engagement from traders and investors amidst the price adjustments.