- POPCAT has fallen by over 10% over the past week, resulting in a healthy shakeout of weak hands
- However, a significant roadblock is still acting as resistance on the charts
As a seasoned researcher with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of bull runs and bear markets. The recent performance of Solana-based memecoin Popcat [POPCAT] has been intriguing to say the least.
In the initial fortnight of October, the memecoin Popcat (POPCAT), built on the Solana platform, was almost touching a new all-time high of $1.5. But then, there was a steep weekly fall exceeding 10%, causing its value to retreat into the range of approximately $1.20.
It’s worth noting that as Bitcoin broke through the $66k barrier, there was an expectation that liquidity would flow towards high-cap memecoins like POPCAT. However, contrary to this usual pattern, POPCAT, despite its $1 billion market cap, did not manage to gain momentum in this instance.
Consequently, analysts from AMBCrypto are pondering if this dip was deliberately designed to eliminate inexperienced traders, possibly paving the way for another all-time high attempt by POPCAT.
THIS might prevent POPCAT from reaching a new ATH
Contrary to the period in early October, where Bitcoin experienced a minimal 2% increase over a span of three days, reaching approximately $62k, this price fluctuation ignited considerable curiosity towards emerging memecoins, boasting potentially higher returns.
Among them, POPCAT stood out, posting daily gains exceeding 10% and reaching a new ATH of $1.5.
Nevertheless, as Bitcoin rallies again, gaining a position at roughly $67,000, the traditional meme coins have once more taken the lead. This resurgence has caused newer coins to bow out, a trend that is clearly demonstrated in the following graph.
Reduced trading activity added strength to the downward trend, as the daily trade volume decreased from its high of $800 million to $500 million – This decrease in turn contributed to the recent 10% fall experienced by POPCAT.
Source : Coinglass
Over the past week, there’s been a trend where funds have moved from older meme-based cryptocurrencies, as Bitcoin investors chose to reinvest their earnings elsewhere. Unfortunately, this has led to a decrease in liquidity for POPCAT.
While it’s evident that we’ve experienced a dip recently, it’s crucial to remember that this could merely be a fleeting fluctuation, not necessarily indicative of the broader trajectory in every bull market cycle. I, as an analyst, am keeping a close eye on the situation to discern the patterns and potential implications.
As a researcher, I observed an intriguing trend: following a spike in whale acquisitions of POPCAT, there was a noticeable decrease in price. This suggests that the current downturn might have been initiated when the coin reached its new peak, causing investors with less resilience to sell off their holdings.
During this process, POPCAT may reach a fresh all-time high before the cycle concludes; however, the growing influence of its competitors might present a substantial challenge along the way.
Traders seized profits from other memecoins
Normally, there’s a small-scale decline followed by every retreat that offers a buying opportunity for investors who want to profit from the price drop by purchasing assets at reduced costs.
Though the Relative Strength Index (RSI) remained neutral, implying potential continued growth, other technical indicators didn’t indicate that $1.30 would be a propitious moment for POPCAT to draw in new investment capital.
Source : TradingView
In simpler terms, as Bitcoin’s value decreased by 10% concurrently with a bearish MACD crossover, it suggests that the decline might persist until Bitcoin reaches a temporary bottom. This situation could lead investors to focus more on POPCAT compared to other memecoins.
Is your portfolio green? Check the Popcat Profit Calculator
If investors choose to invest in other memecoins that are experiencing weekly growth of more than 20%, it could potentially hinder POPCAT’s efforts to bounce back from its current downturn.
Consequently, keeping a close eye on the memecoin market is crucial. Should other memecoins experience a downturn, this might provide an ideal moment for POPCAT to draw in liquidity. Such circumstances could pave the way towards a possible all-time high (ATH).
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2024-10-19 08:08