- Hike in daily trading volume and spot CVD underlined short-term bullish expectations
- A range breakout and greater demand could see POPCAT climb to the next resistance at $0.345
Popcat [POPCAT] fell by 15% from last Saturday’s daily trading session open. However, since then, there has been a sizeable bounce from Monday’s lows, and the cat-based memecoin formed a short-term range on the daily chart too.
This has presented traders with opportunities, and investors could also want to add to their holdings. The memecoin market has not been inspiring over the last two months and hence, caution is necessary. The risk-to-reward for investors could be lucrative.
Downtrend’s strength poses significant threat to POPCAT’s recovery
Source: POPCAT/USDT on TradingView
The 20 and 50-period moving averages are relatively quick MAs. They have been bearish since early December, and POPCAT was unable to overcome even the 20 DMA. Additionally, the trading volume has ramped up over the past six weeks as the downtrend progressed below the September lows.
The rising selling volume was captured on the A/D indicator, which made new lows alongside the price. The Fibonacci extension levels revealed that $0.0795 would be the next target if the downtrend continues.
Source: POPCAT/USDT on TradingView
The 4-hour chart chart showed a range formation between $0.184 and $0.27. At press time, POPCAT was trading just below the range highs. The Awesome Oscillator, which had been bearish on the daily, was on the verge of a bullish crossover on the H4 chart.
A move beyond $0.27 and a retest as support would offer a buying opportunity. To the north, the next significant lower high from the downtrend was at $0.345.
Source: Coinalyze
Finally, Coinalyze data revealed that the spot CVD and Open Interest increased during the bounce from the range lows in recent hours. CoinMarketCap data also reflected a 185% increase in daily trading volume, at press time. However, the funding rate remained negative.
Read Popcat’s [POPCAT] Price Prediction 2025-26
Swing traders can use a rejection from the range highs to enter short positions, or look to trade the breakout. However, investors must be more wary as memes have depreciated vastly since December. And, cat-themed tokens are not as popular as dog-themed ones.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
