Having gone through a period of significant losses in recent weeks, Popcat [POPCAT] is now displaying signs of a potential turnaround.
Over the last three days, this meme-based cryptocurrency has witnessed a noticeable uptrend, climbing from a low of $0.39 to a peak of $0.63.
At the time of writing, Popcat was exchanging hands at $0.5762, showing a 4.67% gain on the daily chart.
Prior to this upsurge, Popcat had been on a downward trend, experiencing a 26.02% decline over the past month. The recent price hike has reignited optimism in the market, leading to a shift in sentiment towards bullishness.
This change in market mood is supported by a positive Weighted Sentiment index. This indicator has turned positive for the first time in the last seven days, indicating a prevailing optimistic sentiment among traders and investors.
Technical Analysis for Popcat
Based on analysis by CryptoCrypto, it appears that Popcat might have reached a local bottom. This drop has attracted new buyers into the market, resulting in increased buying pressure.
The heightened demand has bolstered the uptrend momentum, while the downtrend seems to be losing its power.
One clear signal of increased buying activity can be seen in the recent bullish crossover on the Relative Strength Index (RSI). A bullish crossover in this context suggests that buyers are currently dominating the market, leading to more gains than losses.
Furthermore, the strengthening upward movement was confirmed by another bullish crossover on the Stochastic RSI indicator.
Delving deeper, the netflow for Popcat has turned negative after four consecutive days. A negative netflow indicates that investors are moving their tokens from exchanges to secure offline wallets or cold storage.
When outflows surpass inflows, it usually indicates a growing accumulation trend.
Lastly, the Funding Rate for Popcat remained in positive territory across various exchanges as reported by Coinalyze. This suggests that there is a high demand from investors for long positions, and shorts are paying to maintain their positions.
This positive funding rate reflects bullish sentiment as investors are anticipating higher future prices.
In summary, Popcat is witnessing a shift in market sentiment from bearish to bullish. If the current market conditions persist, we can anticipate Popcat to retest $0.6 and potentially face a significant resistance at $0.9.
In the scenario where the recent bullish momentum falters and a correction takes place, the cryptocurrency could drop to $0.52. It’s worth noting that maintaining a price level above $0.5 is crucial for the bullish scenario, as failing to do so might lead to a decline to $0.47.