Simon’s Cat [CAT] recently entered a phase of price discovery, achieving a new all-time high of $0.0000464 on 21 September. This meme-based cryptocurrency witnessed a rapid surge in value but has since shown signs of slowing down after breaking out of its recent ascending wedge pattern.
Presently, CAT is trading at $0.0000391, marking a decrease of approximately 6.5% over the last 24 hours following a bearish breakout.
Simon’s Cat Price Forecast: Can Relative Strength Index (RSI) Propel a Short-Term Recovery?
Similar to many other meme coins, CAT also encountered a surge in value soon after its launch, fueled by considerable investor enthusiasm. This enthusiasm contributed to CAT’s price doubling in just over a fortnight.
Despite the recent deceleration, a bullish divergence has emerged in CAT’s RSI (Relative Strength Index). While the price charted higher highs, the RSI trended lower, indicating a potential reversal in momentum. Such divergences often precede short-term rallies before potential corrective moves.
If this bullish divergence materializes, CAT could see a resurgence towards the $0.000041 resistance level and possibly even revisit its all-time high levels in the upcoming trading sessions.
Conversely, the recent breakout from the ascending wedge raises the likelihood of further retracement. If selling pressure persists, CAT might find support levels at $0.0000352 and $0.0000308 before attempting a recovery.
With the RSI hovering around 45, significantly lower than its moving average, the prevailing momentum appears to be shifting in favor of sellers.
Additionally, the MACD indicator has shown a bearish crossover, as the MACD line dipped below the signal line. Such crossovers typically signify the start of a short-term bearish trend. A further decline beyond the zero level on these indicators would confirm a more robust downtrend.
Outlook for Simon’s Cat
Simon’s Cat (CAT) has reached a critical juncture post its all-time high milestone and subsequent retracement from the wedge breakout. Although a bullish divergence on the RSI hints at a potential short-term recovery, traders are advised caution, considering indicators like the MACD that indicate weakening momentum.
A breakout above $0.0000405 could rejuvenate bullish sentiments, propelling the price towards $0.0000464, while a sustained decline could test support zones at $0.0000352 and $0.0000308.
Traders should closely monitor these key price levels, in addition to prevailing market sentiments, to navigate and capitalize on CAT’s future price actions.