- Increased daily trading volume and surge in spot CVD indicate short-term bullish sentiment
- Breach of the current trading range could push POPCAT up to the $0.345 resistance level
Popcat [POPCAT] experienced a 15% decline from its opening price last Saturday. However, a significant rebound from the Monday lows has since taken place. This recovery has formed a short-term trading range on the daily chart.
This development offers trading opportunities and could encourage investors to add to their positions. Despite the memecoin market showing lackluster performance over the past two months, this situation provides a potentially lucrative risk-to-reward ratio for investors.
Strengthening Downtrend Poses Threat to POPCAT’s Recovery
The 20 and 50-period moving averages have remained bearish since early December. Despite attempts by POPCAT to surpass the 20 DMA, the coin has failed to do so. Moreover, as the downtrend continued below September’s lows, volume levels escalated over the past six weeks.
Increased selling pressure has been reflected on the Accumulation/Distribution (A/D) indicator, which has sunk to new lows alongside prices. Fibonacci extension analysis suggests that a renewed downtrend would target $0.0795.
Popcat Trading Strategy on the 4-hour Chart
The 4-hour chart showcases a range formation between $0.184 and $0.27. At the time of writing, POPCAT’s price is marginally below this range’s upper boundary. The Awesome Oscillator, which has been bearish on the daily timeframe, is poised for a bullish crossover on the 4-hour chart.
Breaking above $0.27 could create a buying opportunity, as this level acts as both resistance and support. The next crucial resistance point lies at $0.345, representing a significant lower high from the downtrend.
Key Insights from Coinalyze Data
Data from Coinalyze indicates a surge in spot Contract Volume Difference (CVD) and Open Interest following the rebound from recent lows
