Key Takeaways
Simon’s Cat (CAT) has trended upward since its launch in August, culminating with an all-time high of $0.0000465 on Sept. 21.
However, momentum waned afterward, resulting in a downward trend that lasted until Oct. 10.
The CAT price started a gradual upward movement afterward which accelerated on Oct. 21 once Binance announced it would list CAT in its futures platform. While CAT surged shortly after the announcement, it is still unclear if this increase will be lasting.
On Oct. 21, Binance announced it would list CAT perpetual futures in its platform with the ticker 1000CAT. The listing will have a capped funding rate between -2 and 2% and a maximum leverage of 75x.
Binance has been focused extensively on meme coin listings in the past few months.
Shortly after the announcement, the CAT price increased by 50%, reaching a high of $0.0000375. The price has fallen slightly since after a rejection from a descending resistance trend line (black) which created a long upper wick.
It remains to be seen if the CAT meme coin can close above the horizontal area of $0.0000312. The area had previously acted as resistance, and whether CAT closes below it or instead breaks out from the trend line can determine if the future trend is bullish or bearish.
A successful breakout can take the CAT price to the next resistance at $0.0000440. On the other hand, the closest support is at $0.0000235.
An ascending support trend line and a horizontal support area create this support.
Technical indicators lean bullish. The six-hour Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing, and neither has generated any bearish divergences.
Therefore, the most likely future outlook is a breakout from the trend line and an increase to $0.0000440.
While the price action and indicator readings lean bullish, the wave count is bearish. This is because the most likely count shows a five-wave decline ongoing since the CAT price is at an all-time high.
As a result, it indicates that the trend is bearish, and the upward movements are corrective.
According to the count, the ongoing CAT price increase is an A-B-C structure that has likely ended. If the count is accurate, the CAT price will not break out from the resistance trend line; rather, it will be rejected and fall to new lows.
This bearish wave count will be invalidated if CAT breaks out from the trend line. In that case, the trend will be bullish, and an upward movement toward the all-time high is likely.
The CAT price has increased rapidly today, spurred by Binance’s listing in its futures platform.
However, mixed readings come from price action, wave count, and technical indicators.
So, it is unclear if this upward movement will continue in the long term.