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.
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.
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.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
