Key Takeaways
Solana-based memecoin Popcat (POPCAT) has retraced after it experienced a 30% price increase over the last seven days. The price increase drove POPCAT’s market value to $0.25.
But today, the memecoin has lost 6% from that surge while trading at $0.23. Despite the reversal, it does not seem like the cryptocurrency will face an extended correction, with indicators showing that this decline could be temporary.
So, what’s next for POPCAT’s price? This analysis looks at its short-term potential.
POPCAT’s price reached an all-time high of $2.05 four months ago. But since that height, the hype around the memecoin has fallen, leading the token’s value to crash.
The daily chart shows that the token formed lower highs and lows amid this decline. This eventually developed into a bearish descending channel.
However, POPCAT broke above the upper trendline of the descending channel after the bulls defended the $0.15 support. This setup ensured the price tested $0.25 again before the slight pullback to $0.23.
Yet, indicators, including the Chaikin Money Flow (CMF), reveal that the retracement might not last. As illustrated by the chart below, the CMF reading is 0.04.
With the CMF breaching the zero signal line, buying volume remains strong. If this momentum holds, the token could quickly reclaim $0.25, with the potential for the price to breach the $0.29 overhead resistance.
Furthermore, the Bull Bear Power (BBP) also agrees with this forecast. For those unfamiliar, the BBP measures the strength of bulls compared with that of bears.
With the technical setup changing completely from bearish to bullish, the Solana memecoin will likely reverse its recent losses. If validated, the Fibonacci levels give insights into the potential targets that POPCAT might hit.
