POPCAT – Why a new ATH is possible despite 22% fall in memecoin’s value

  • POPCAT’s value depreciated by 5.37% in the last 24 hours
  • Market indicators pointed to a shift in market sentiment from bullish to bearish

As a seasoned researcher with years of market analysis under my belt, I must admit that the current trend of POPCAT is giving me a déjà vu feeling – a sense of déjà vu that I never thought I’d experience again so soon. Just a few days ago, we were celebrating the memecoin’s new ATH, and now, here we are, witnessing a 22.71% decline over the past three days.


Previously this month, there was a significant surge in the overall crypto market. This rise led many memecoins to reach recent peak levels and all-time highs (ATHs). Similarly, POPCAT didn’t escape this trend, as it climbed to achieve a new ATH of $2.07 on its price charts.

After that point, the memecoin has exhibited a noticeable shift towards an upturn – Possibly indicating an upcoming downturn.

Currently, POPCAT is being traded at $1.72, which represents a drop of 5.37% over the past day. This implies that after reaching $2.07 three days ago, the memecoin saw a significant decrease of approximately 22.71%. However, before this decline, the cryptocurrency had been experiencing an upward trend. On a weekly basis, it had increased by 19.55%, and on a monthly scale, its growth was 24.64%.

In other words, are we witnessing just a temporary adjustment or is there more potential for the market to continue falling?

What does POPCAT’s chart say?

Based on AMBCrypto’s examination, it appears that the market sentiment for POPCAT has shifted from bullish to bearish at this moment due to increased selling activity.

POPCAT – Why a new ATH is possible despite 22% fall in memecoin’s value

Over the past week, I’ve noticed a noticeable change in my crypto portfolio, specifically with POPCAT. The Relative Strength Index (RSI) has dropped from 66 to 53, indicating a potential shift in its momentum. Furthermore, an RSI-based Moving Average (MA) has given a bearish signal, now hovering above the RSI at 56. This could be a sign of a possible trend reversal that I’m keeping a close eye on.

This implies that the memecoin is experiencing intense selling activity right now, with sellers holding significant control over the market. An increase in selling pressure usually results in a drop in its charted price.

The potential for a drop in price can be supported by a decrease in the +DI, which fell to 17 following a bearish crossover and left the ADX at 24. This suggests that the altcoin’s upward trend was weakening as bearish sentiment increased across the market.

POPCAT – Why a new ATH is possible despite 22% fall in memecoin’s value

Additionally, this selling pressure can be seen in the form of greater inflows into exchanges.

Over the past four days, as per Coinglass data, the inflow of funds into trading spots has persisted. This indicates that investors may be moving their assets onto exchanges with the intention of selling, particularly to cash in on potential profits.

POPCAT – Why a new ATH is possible despite 22% fall in memecoin’s value

As a researcher, I’ve observed a change in the general market attitude, and it appears that those who have taken short positions are particularly influential at present. This suggests a shift in market dynamics that could potentially impact investment strategies.

The long/short ratio also revealed that most investors are now betting on the price to decline.

POPCAT – Why a new ATH is possible despite 22% fall in memecoin’s value

To summarize, it’s evident that even long position liquidations have been on the rise recently, mirroring the trend observed over the last week.

Over time, investors holding long positions have been compelled to sell off their assets due to a sustained pattern. This is because when these long position holders doubt the direction of the trend, they choose not to pay extra to maintain their positions, thus closing or being pushed out of them.

What next for the memecoin?

To summarize, the current trend suggests a drop in the short-term for the altcoin. If this downward momentum persists, it’s likely that the price of POPCAT might find its crucial bottom near $1.37.

If bulls manage to take control of the market again, this dip could simply be a temporary reversal, propelling the price back up toward $1.97. Over this level, any resistance would likely be minimal, potentially allowing the memecoin to reach another all-time high on its charts.

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2024-11-21 03:36