- Popcat has seen increased volatility, which may be good news for traders taking short-term trades.
- Technical indicators indicated that the upward momentum was likely to prevail soon.
Pop Cat [POPCAT] It was on the verge of breaking out of the local resistance area, which is also the fair price gap. Though on-chain indicators showed that the sentiment weighted is negative, traders could stand to make profits for a few days if POPCAT continues its uptrend.
The volatility of the past few weeks has triggered a lot of liquidation, most of which were long positions taken in July. Here’s why the near-term outlook is bullish, even though Bitcoin has faced resistance near the $60,000 mark.
Late buyers can wait for this to happen before placing a bid.
POPCAT/USDT. Source: TradingView
A series of Fib retracement levels were plotted based on the late June rally: Volatility over the past two weeks has seen POPCAT retest the 61.8% 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 a fair price gap (white box) which could act as resistance and repel the bulls.
However, despite the recent price retracement, the OBV is trending up, and the CMF has also risen above +0.05, indicating strong capital inflows.
Momentum is also bullish with the RSI at 58, suggesting that the memecoin is likely to break above the $0.59 resistance.
FX flow trends and sentiment are at odds
sauce: Santiment
Weighted sentiment has been consistently negative over the past two weeks, with price volatility starting to increase over the past 24 hours as prices surged.
The daily RSI was at 62, suggesting that scalping traders can enter long positions and capitalize on the upward momentum to profit.
sauce: Coin Glass
The spot netflow chart shows that POPCAT has not been deposited in large quantities on exchanges despite the gradual rise in price over the past two days.
This means that prices may continue to rise and selling pressure will not be a major obstacle.
sauce: Coin Glass
read Pop Cats [POPCAT] Price Prediction 2024-25
Since June 26, volatility has reduced both long and short positions. Traders should keep a close eye on this chart if the coin rises above $0.6.
A surge in short selling can cause prices to skyrocket, which scalping traders can take advantage of to make a profit.
