Key Takeaways
POPCAT increased parabolically after its launch in February 2024, emerging as the top-performing meme coin. Its rise saw an astonishing 37,000% growth until the all-time high in November 2024.
However, momentum has shifted with POPCAT falling 80% from its peak. Despite this breakdown, the recent breakout from a descending resistance trend line has reignited bullish sentiment. Let’s look at the price action and see where this bounce will lead.
The POPCAT price has fallen under a descending resistance trend line since its all-time high of $2.07 in November 2024. The decline led to a low of $0.167 before the price bounced. So far, POPCAT has declined 85% since the all-time high.
Despite its decline, POPCAT regained its footing and broke out from the resistance trend line on Feb. 10, after struggling with it for 84 days. This is a sign the correction is over.
If the POPCAT price continues to increase, the main resistance area will be at $1.13-$1.35, created by the 0.5-0.618 Fibonacci retracement resistance area. The lower portion of this range is also a horizontal resistance.
Technical indicators support the upward movement. The Relative Strength Index (RSI) broke out from the bearish divergence trend line (red) that catalyzed the entire drop. On top of this, the Moving Average Convergence/Divergence (MACD) has generated a bullish divergence (green), a positive sign for the future trend.
So, the daily time frame suggests that an increase toward the $1.13-$1.35 region is likely.
The most likely wave count shows that POPCAT has already finished its bullish cycle. POPCAT completed a five-wave increase starting in February 2024 and ending with the all-time high in November.
Wave five developed into an ending diagonal, as evidenced by the ascending wedge pattern, further increasing the likelihood that the upward movement is over.
While this is a bearish POPCAT prediction, the short-term outlook is not as grim. Since the price has completed a five-wave decline (black), wave A may have already ended. The short-term divergences and breakout support this outlook.
As a result, POPCAT may have started its relief B wave, which can take it to the $1.15-$1.38 region. While another downward movement is likely afterward, POPCAT can still increase by over 250%, depending on if the coin reaches the range low or high.
The POPCAT price has fallen over 80% since its all-time high. The wave count also suggests that the price has reached its high for the current market cycle and is now mired in a lengthy correction.
Despite these bearish developments, POPCAT bounced and broke out from a descending resistance trend line, a sign that the first portion of the correction is over. Thus, a significant relief rally could follow in the next few months.