Solana’s Popcat Becomes Volatile – Is a Profit Opportunity Emerges?

• Popcat has seen an increase in volatility which could be good news for short term traders.
• Technical indicators show that upward momentum is likely to prevail soon.

Popcat (POPCAT) was about to break out of a local resistance area that was also a fair value gap. On-chain metrics showed that sentiment was weighted negative, but traders could have a few profitable days if POPCAT continues its uptrend.

The volatility of the past few weeks has triggered numerous liquidations, most of them long positions in July. Here’s why the short-term outlook is bullish, even though Bitcoin has encountered resistance around the $60,000 territory.

Late buyers can wait until this happens before bidding.

Source: POPCAT/USDT on TradingView

Based on the late June rally, a set of Fibonacci retracement levels have been plotted. Volatility over the past two weeks has seen POPCAT retest the 61.8% levels and nearly test the 78.6% levels at $0.403 and $0.319 respectively.

On the 12-hour chart, the dramatic price drop on July 3 left behind a fair value gap (white box). This area was likely to act as resistance and could push back the bulls.

However, the OBV has been trending upwards despite the recent price pullback. The CMF has also moved above +0.05, indicating a strong inflow of capital.

Momentum was also bullish with an RSI reading of 58, and indicated that the meme coin was likely to break above the $0.59 resistance.

Trends in exchange flows and disagreement sentiment

Source: Santiment

Weighted sentiment has been consistently negative over the past two weeks. Price volatility has started to pick up over the past 24 hours as prices have spiked.

The daily RSI was at 62, indicating that scalper traders may consider going long and taking advantage of the upward momentum to book profits.

Source: Coinglass

The spot net flow chart showed that over the past two days, even though the price has been slowly climbing, POPCAT has not been massively deposited on exchanges.

This means that there is a chance that prices will continue to rise and selling pressure will not be a major obstacle.

Source: Coinglass

Read Popcat (POPCAT) Price Prediction 2024-25

Volatility has seen both long and short positions decimated since June 26. Traders can keep an eye on this chart as the token climbs above $0.6.

A wave of short liquidations can cause a spike in prices, which scalper traders can use to take profits.