- POPCAT’s Long/Short ratio stood at 1.05, indicating strong bullish sentiment among traders
- POPCAT’s RSI suggested there may be plenty of room for the memecoin to rise
With the larger market on its way to recovery, Solana-based memecoin POPCAT caught the attention of many traders and investors. This comes after the altcoin broke through a long-term consolidation phase on the charts, a phase that lasted more than eight days.
POPCAT breaks out of a long-term consolidation
As a result of this breakout, sentiment around POPCAT could be about to shift from a downtrend to an uptrend. In fact, the memecoin already registered a price increase of more than 23%. However, at the time of writing, there seemed to be a small price correction.
The past two and a half months have not been kind to the memecoin as it faced sustained periods of downward momentum, leading to a price drop of over 70%. In addition to the price drop, the memecoin has also faced resistance from a trend line. This contributed to a price reversal whenever POPCAT’s price approached it.
POPCAT technical analysis and key levels
This time too, the price reached the trend line after a price increase of more than 23%. At the time of writing, it looked like a price correction would occur at this level.
According to AMBCrypto’s technical analysis, if POPCAT breaks this strong trendline and closes a daily candle above the $0.75 level, there is a high chance that it could rise by 50% to hit the next resistance level of $1.15 in the future reaches.
Source: TradingView
Currently, the memecoin is trading below the 200 Exponential Moving Average (EMA) on the daily time frame, indicating that it is in a downtrend.
On the plus side, with POPCAT’s Relative Strength Index (RSI) at 43, a technical indicator suggested that there could be plenty of room for the memecoin to rise significantly in the future.
Bullish statistics in the chain
In light of the bullish technical data and memecoin price action, intraday traders are now excited.
As revealed by on-chain analytics firm Coinglass, they are betting significantly on the long side. The POPCAT Long/Short ratio stood at 1.05, highlighting traders’ bullish sentiment.
Source: Coinglass
Moreover, 51.50% of the top traders on the exchanges had long positions, while 48.5% had short positions. However, the percentage on the long side seemed to be constantly increasing.