POPCAT Reaches All-Time High Over $1, but Momentum May Be Slowing
POPCAT made a new all-time high today, but it might got overextended. Will the rise continue past its current resistance?
Key Takeaways
- POPCAT surged 73.85% after rebounding from a significant price drop.
- The price is approaching resistance after hitting a new all-time high.
- Bullish or bearish? Key resistance interaction will decide the future direction.
POPCAT recently surged to a new all-time high of $1.073 after significantly recovering from its earlier lows.
However, the price has now encountered strong resistance, leading to uncertainty about its future direction. Will POPCAT continue to climb or face a potential downturn? Here are the key takeaways.
POPCAT Price Analysis
After hitting its all-time high of nearly $1 on July 20, POPCAT’s price dropped. Initially, it moved sideways before reaching a lower high of $0.96 on July 27, from which point it started to decline more decisively.
By Aug. 5, POPCAT had dropped 73.85%, hitting a low of $0.26, where it interacted with its ascending support level. The Relative Strength Index (RSI) on the daily chart fell to an oversold level of 34.
However, the price quickly rebounded, entering an uptrend and reaching a high of $0.66 by Aug. 10 and $0.80 by Aug. 25.
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These two highs looked like a corrective upward structure after a significant downfall, but the price was kept above descending resistance on the expected downturn.
For Sept. 6, another high momentum uprise was seen, leading to a new all-time high of $1.073 today.
This was an interaction with a lower ascending resistance level, and the daily chart RSI shows that it entered an overbought zone at 73.
Can we see a further rise to its upper resistance level, or is a downturn caused by a rejection imminent?
POPCAT Price Prediction
Looking forward, there are two potential scenarios. Either POPCAT has entered a new bull phase and formed a five-wave pattern from Sept. 6 that could push it towards the $1.34 mark, or the recent rise is simply a corrective move, with the price forming an ABC three-wave pattern that could be completed today.
In the bullish count, its first recovery from Aug. 5 to 25 is the first sub-wave. The following higher high is the B wave from the lower degree ABC correction until Sept. 6.
This makes the rise since then its wave three of the higher degree, which should be longer than its initial, meaning it should reach the 1.618 Fibonacci extension.
However, there are specific problems with this count, and the fact that the price looks overextended and is coming to significant resistance suggests that a downturn could also be likely in this bearish case.
From Aug. 5, we have seen a corrective structure forming a double top, which is now followed by a significant downturn.
Its current resistance interaction will give the first sign of which scenario is in play.
If POPCAT continues its upward advancement to a slightly higher high, the probability of it being in a bullish count will increase. But if the price receives a hard rejection a bearish one will look more likely.
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