Popcat (POPCAT), a meme coin with a rapidly growing community, has experienced a jaw-dropping surge in price, climbing 39% over the past week and an impressive 72% in the last 30 days. This rally has followed renewed market optimism, sparked by the U.S. Federal Open Market Committee’s (FOMC) 50 basis point interest rate cut. As of now, Popcat is trading at $0.87, up 21% in the last 24 hours, making it the second-largest gainer among the top 100 tokens.
With such remarkable gains, many investors are asking: is the meme coin’s momentum sustainable, or is Popcat due for a correction?
Whale Activity – A Major Factor Behind Popcat’s Surge
Popcat’s recent price spike has been fueled by significant whale activity. According to on-chain data from Lookonchain, a smart whale purchased $4.13 million worth of POPCAT on September 11 and 12, profiting over $1.2 million in under ten days. This whale is now sitting on unrealized profits, and their future moves could heavily influence Popcat’s next price direction.
The meme coin’s price has maintained an upward trajectory for the past 11 days, with no major corrections. On September 12, Popcat briefly consolidated, forming a bullish pennant continuation pattern. This technical setup led to another price rally, with the coin approaching a resistance level near $1. However, the big question remains: can Popcat break through this barrier, or will it face a significant pullback?
Technical Outlook – Is a Correction Imminent?
Popcat’s price is currently trending within a rising channel, with defined top and bottom boundaries that have contained price movements over the past month. These boundaries have acted as resistance and support, hindering any significant breakout. The coin has approximately 6% more room for potential gains before it hits the upper boundary of the rising channel. If Popcat fails to break through this resistance, it could face a correction of up to 25%, potentially dragging the price down to $0.68.
If the price correction intensifies, Popcat could fall to a more substantial support level around $0.57, a 15% drop from its current price. Such a move could be triggered by smart investors locking in profits, especially those who have seen massive gains over the last month.
Popcat’s Future – A Bullish Case?
Despite the looming threat of a correction, Popcat’s long-term outlook remains optimistic. The meme coin has a market capitalization of $855 million and was recently listed on Binance’s perpetual contracts, boosting both its liquidity and market visibility. This listing has spurred higher trading volumes and increased speculation, offering potential for further price gains.
Furthermore, the coin has strong support at the $0.50 level, and rising relative strength index (RSI) readings suggest that momentum may still favor bulls. If Popcat can break through its current resistance level, there’s potential for a rally that could push the price above $1, setting a new all-time high (ATH). However, for this to happen, volume confirmation is crucial as the price tests the upper boundary of the rising channel.
Also Read: Solana Hits 5.4M Daily Wallets – Popcat Surges Past $600M Market Cap And SOL Eyes $400 Target
Popcat’s recent surge has positioned it as a key player in the meme coin market, but its future is far from certain. While the coin has room for additional gains, the risk of a sharp correction looms large, especially if whales begin cashing in their profits.
For investors, the next few days will be crucial in determining whether Popcat will continue its meteoric rise or if the price will face a steep pullback.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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