Key Takeaways
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.
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.
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.
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.
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.