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Simon’s Cat (CAT) Price Surges 50% Following Binance Futures Listing Announcement

Published
Valdrin Tahiri
Published
By Valdrin Tahiri
Edited by Ryan James

Key Takeaways

  • Binance announced it will list Simon’s Cat (CAT) futures.
  • The CAT price increased by 50% after the announcement.
  • Can CAT break out from its descending resistance trend line?

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.

CAT Pumps after Binance Listing

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.

CAT Price Movement
CAT/USDT Six-Hour Chart | Credit: Valdrin Tahiri/TradingView 

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.

Bearish Wave Count

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.

CAT Wave Count
CAT/USDT Six-Hour Chart | Credit: Valdrin Tahiri/TradingView 

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.

Future Trend Unclear

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.

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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Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.
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