As the broader market is on the road to recovery, the Solana-based memecoin POPCAT has attracted the attention of many traders and investors. This, after the altcoin went through a prolonged consolidation phase on the charts, which lasted for more than eight days.
Following this breakout, sentiment around POPCAT could be about to shift from a downtrend to an uptrend. In fact, memecoin has already seen a price increase of over 23%. However, at press time, a minor price correction appeared to be underway.
The last two and a half months have not been kind to memecoin, as it has faced sustained periods of bearish momentum leading to price declines of over 70%. In addition to the price decline, memecoin also faced resistance from a trendline. This contributed to a price reversal whenever the POPCAT price approached it.
This time too, after registering a price increase of over 23%, the price reached the trendline. At the time of writing, it appeared to be facing a price correction at this level.
According to AMBCrypto technical analysis, if POPCAT breaks this strong trendline and closes a daily candle above the $0.75 level, there is a high chance that it will surge 50% to reach the next resistance level of $1.15 going forward.
Source: TradingView
Currently, memecoin is trading below the 200 exponential moving average (EMA) on the daily time frame, indicating that it is on a downtrend.
On the positive side, with POPCAT’s Relative Strength Index (RSI) at 43, a technical indicator suggests that there could be enough room for memecoin to rally significantly in the future.
In light of the bullish technical data and memecoin price action, intraday traders are now excited.
In fact, as revealed by on-chain analytics firm Coinglass, they are betting significantly on the long side. The POPCAT Long/Short ratio stood at 1.05, highlighting the bullish sentiment among traders.
Source: Coinglass
Additionally, 51.50% of top traders on the exchanges held long positions, while 48.5% held short positions. However, the percentage of the long side seems to be constantly increasing.
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