Popcat surges by 20% in 24 hours, hits a new ATH – What now?

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  • Popcat has surged by 53% over the past week.
  • Amidst increased market optimism and a surge in futures open interest, Popcat reaches a new ATH.

As a seasoned analyst with over two decades of experience in the ever-evolving crypto market, I have seen my fair share of memecoins skyrocketing and then plummeting back to earth. However, Popcat’s [POPCAT] recent surge has caught my attention, not just because of its astronomical growth, but also due to the underlying factors that seem to be driving this trend.

Over the past month, the memecoin Popcat (POPCAT), built on the Solana platform, has seen extraordinary growth. This rapid expansion has catapulted it to the leading position among meme coins, while many other similar coins have faced a drop in earnings over the course of a week.

Popcat hits a new ATH

Over the last day, the price of Popcat has exceeded its all-time high, reaching $1.47. Currently, it’s trading at $1.45. This remarkable rise represents a 53.07% jump in the weekly trend and an additional 20.00% boost to the daily bullish trend.

In my analysis, I’ve observed a significant surge for Popcat, with its value skyrocketing by an impressive 185.86% on a monthly scale, making it the highest-earning memecoin in this period.

Therefore, the Popcat’s recent massive surge raises questions about the factors driving it.

What’s driving the surge

Initially, a key reason behind the memecoin’s price increase is an unexpected growth in the number of future contracts being held, or futures open interest. Based on Coinglass figures, this open interest has increased by approximately 23.51%, reaching $234.9 million.

Consequently, the open interest for future contracts has significantly increased from a minimum of $121.5 million to $237.1 million. This spike in open interest indicates growing investor confidence in the memecoin’s trajectory, as they create more new investment positions.

Furthermore, heightened enthusiasm within the market has significantly contributed to Popcat’s continuous growth. This trend is evident in the spike of trading transactions. Consequently, the volume of this memecoin has skyrocketed by a whopping 93%, reaching an impressive $1.06 billion.

What next for Popcat?

Notably, Popcat is enjoying increased market favorability and positive sentiment.

This rise in demand for long positions is backed up by a positive funding rate, which implies that investors anticipate more profits and are therefore progressively adopting long positions.

Over the last week, Popcat’s OI-weighted funding rate has predominantly stayed in a positive range. This continuous positive trend in the funding rate suggests a consistent demand for long positions, as we had earlier noted.

Realistic or not, here’s POPCAT’s market cap in BTC’s terms

In this case, investors are ready to cover an additional cost when they want to borrow shares held by those who have short positions. This shows another sign of optimism in the market.

Given the ongoing market trends, it’s likely that the memecoin could reach a fresh peak of around $1.6 in the near future.

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2024-10-07 20:08