As the broader market continues its path to recovery, the attention of many traders and investors has been captured by POPCAT, a Solana-based memecoin. This newfound interest in the altcoin comes after it broke out of a lengthy consolidation period that lasted for more than eight days.
Breaking Free from Consolidation
Following this breakout, there is a growing sense of optimism surrounding POPCAT as it transitions from a period of decline to a potential uptrend. The memecoin has already experienced a price surge of more than 23%, although there are indications of a minor price correction taking place currently.
Over the past two and a half months, the memecoin has faced challenging times, witnessing a significant drop in price by over 70%. In addition to the price decline, it has encountered resistance from a trendline, resulting in price reversals whenever the price approached this level.
POPCAT’s Technical Analysis and Significant Levels
Even after the recent surge of over 23%, the price once again reached the trendline, where it is currently undergoing a price correction. Analysts at CryptoCrypto believe that if POPCAT manages to surpass this sturdy trendline and close a daily candle above the $0.75 mark, there is a high likelihood that it could surge by 50% and reach the next resistance level of $1.15 in the foreseeable future.
At present, the memecoin is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a downtrend in its trajectory. On a positive note, with the Relative Strength Index (RSI) of POPCAT standing at 43, there appears to be room for a significant rally in the coming days based on technical indicators.
Bullish Signals from On-Chain Data
Given the optimistic technical outlook and recent price movements, intraday traders are showing enthusiasm for POPCAT. According to insights from the on-chain analytics firm Coinglass, there is a notable bias towards long positions among traders. The POPCAT Long/Short ratio currently sits at 1.05, reflecting the prevailing bullish sentiment among traders.
Moreover, data reveals that 51.50% of top traders across various exchanges hold long positions, while 48.5% have taken short positions. Notably, the percentage of long positions is consistently increasing, showcasing the growing confidence in the potential upside of POPCAT.