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POPCAT Price Hits 9-Month Low, but Rebound Likely if This Happens

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Victor Olanrewaju
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Key Takeaways

  • The POPCAT volume has dropped much lower than $40 million, but this signifies that the downtrend is now weak.
  • The price decline has led to a falling wedge, indicating that buying pressure could trigger a bounce.
  • While POPCAT’s price may climb above $1 in the long term, the short-term outlook suggests an increase to %0.67.

Cat-themed memecoin Popcat (POPCAT) has slipped to $0.25 — its lowest level since June 2024. This development comes amid the broader market decline.

POPCAT’s price, which hit a new all-time high of $2.07 in November, is now down 88%. However, the token could claw its way back up as a bullish pattern seems to be forming.

However, that will depend on the sentiment around cryptocurrency in the market. Here are the likely targets if POPCAT sees an increase in buying pressure.

POPCAT’s Future in Question

When POPCAT’s price climbed to $2, its volume surpassed $400 million. Generally, an increase in volume indicates high liquidity around an asset.

In most cases, when price rises alongside increasing volume, it signals a strong uptrend. But if volume drops while the price climbs, it suggests a weak rally that could fade.

In POPCAT’s case, trading volume has sharply declined from its peak, now sitting at $69.24 million. However, since both price and volume are dropping together, selling pressure around the memecoin is easing.

Therefore, this could imply that POPCAT might not experience another double-digit correction in the short term. Instead, it appears to be nearing its bottom, which could trigger a reversal.

POPCAT volume decreases amid price correction
POPCAT Volume | Credit: Santiment 

Falling Wedge Shows Up

Additionally, analysis of the daily chart supports this outlook as the price decline has formed a falling wedge—a pattern seen as a bullish reversal sign.

As seen below, the POPCAT price seems to have bottomed out at $0.22, near the wedge’s lower trendline.

However, buying pressure must be intense to validate the breakout, and the memecoin has to rise above the resistance by $0.72.

If buyers step in and the price breaks above the wedge’s upper trendline, POPCAT could see a strong rebound above $1 in the mid to long term.

However, if selling pressure persists, the memecoin might continue consolidating before any significant move comes into play.

POPCAT price eyes rebound
POPCAT/USD Daily Chart | Credit: TradingView 

POPCAT Short-Term Price Outlook

Like the daily chart, the 4-hour chart also appears to agree with POPCAT’s price recovery. One of the indicators leading this prediction is the Chaikin Money Flow (CMF).

The CMF assesses the level of liquidity flowing into a cryptocurrency. This indicator determines whether accumulation dominates or distribution takes the lead.

A rising CMF suggests intense buying pressure, while a declining CMF indicates increased selling pressure. On Feb. 2, the CMF reading was -0.52, indicating that POPCAT faced high selling pressure then.

While the reading is still negative, the image below shows it is on the cusp of rising above the zero signal line. Therefore, if this trend continues, POPCAT’s price might rise above the 0.382 Fibonacci level, also known as the bear market support floor.

POPCAT price eyes major recovery
POPCAT/USD 4-Hour Chart | Credit: TradingView 

Once validated, the meme coin might climb to $0.67. Should buying pressure intensify, POPCAT could rally to $0.80 in the short term.

Alternatively, if the CMF fails to rise above the signal line successfully, this might not happen. In that scenario, the memecoin’s value might sink to $0.16.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
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