Popcat [POPCAT] Price Analysis: Memecoin Surges 99% as It Breaks Out of Downtrend

Popcat price has experienced remarkable growth over the past month, surging from a local low of $0.12 to a high of $0.44. At the time of writing, Popcat was trading at $0.40, reflecting an impressive 99.24% increase over the last thirty days.

This bullish trend extends to the weekly and daily charts, with gains of 53.9% and 7.9%, respectively.

This recent price surge highlights a strong 3-step reversal, following last year’s major breakdown when the memecoin plummeted by 94%, dropping from $1.90 to $0.12.

The major steps driving Popcat’s current momentum are as follows:

First, Popcat successfully broke out of its downtrend a week ago, and this breakout has held since.

Secondly, Key Resistance Retest: The memecoin has retested the critical $0.38-$0.40 resistance zone, positioning it for further upward movement.

LastlyMassive Weekly Gains: Over the past week, Popcat has surged by an impressive 55%, signaling increasing demand. High demand often precedes price increases, reinforcing the bullish outlook.

The completion of these steps suggests that Popcat is well-positioned to sustain its current upward trend, provided other factors remain constant.

Can Popcat hold recent gains?

According to AMBCrypto’s analysis, Popcat is experiencing strong bullish sentiments, leading to a sustained upward momentum.

For starters, this bullishness is evidenced as the memecoin’s Funding Rate aggregated by exchange has held positive over the past 6 days. A positive Funding Rate for such a long period reflects a sustained demand for long positions.

As such, investors are betting on prices to rise, thus, they pay shorts to hold their positions during downturns.

Additionally, looking at the Futures Buy/Sell Volume Ratio, the markets are recording more Futures buy volume for Popcat than sell volume.

Although buying volume has declined, at press time, it sat at $41.63k while selling volume sat at $23.24K. This positive imbalance means that buyers are more active and dominant in the Futures market.

AMBCrypto observed this bullishness in the Futures, as most of these buyers are entering the market and going long.

Popcat’s Long/Short Ratio showed that 58% of Futures accounts were longs while 41% were shorts.

Therefore, there are more bullish sentiments in the Futures market, implying that investors expect prices to rise in the near term.

What’s next for the memecoin

Recent price movements indicate that Popcat is well-positioned for further gains on its charts. However, the memecoin faces challenges related to spot market sentiment.

Over the past five days, spot netflow has consistently shown positive values, which suggests that investors who have been underwater since February are now selling as they return to profitability.

This selling pressure could impact Popcat’s ability to sustain its upward momentum.

For the memecoin to continue with the uptrend, spot activities have to turn into accumulation rather than selling.

If this demand is finally realized, Popcat could make more gains, rising to $0.54. However, if sellers in the spot market continue dominating, a pullback to $0.351 is inevitable.