Popcat Price Surges 22% In Market Recovery, Is A Correction Imminent?

Popcat price has experienced a significant surge in price, climbing 39% over the past week and 72% in the last 30 days, as renewed market optimism follows a 50 basis point cut by the U.S. FOMC. In just the last 24 hours, the meme coin added an impressive 21% to its value, currently trading at $0.87. This explosive rally positions POPCAT as the second-largest gainer among the top 100 tokens. However, with such significant gains, many investors are left wondering: is it time for a breather, or will the momentum continue?

Is Popcat Price Correction Imminent?

The price of POPCAT has been on a steady upward trajectory for the past 11 days, experiencing no significant corrections. On September 12, a slight consolidation occurred, contributing to the formation of a bullish pennant continuation pattern. Following this, the price surged higher, nearly reaching a resistance zone around $1.

Currently, the Popcat price is trending within a rising channel defined by clear and dynamic top and bottom boundaries. These boundaries have consistently contained prices over the past month, which may hinder a breakout this time around.

Popcat price has approximately 6% more potential gains before reaching the upper boundary of the rising channel. If the price faces rejection at this level, it could result in a correction of up to 25%, bringing it down to $0.68.

If Popcat fails to hold above this temporary support, it could slide lower to $0.57, extending the correction by another 15%. The impending correction could be fueled by smart investors who have made a killing from Popcat locking in profits.

According to Lookonchain, a smart whale bought $4.13 million worth of POPCAT on September 11 and 12 and made over $1.2 million in less than ten days. 

The smart whale made more than $1.2M on $POPCAT again!

He spent 4.13M $USDC to buy 6.11M $POPCAT at $0.68 on Sept 12 and Sept 13, now worth $5.32M, with an unrealized profit of $1.21M!https://t.co/lwNqWGB6Ib pic.twitter.com/IbDQy3DRcJ

— Lookonchain (@lookonchain) September 19, 2024

The whale is still sitting on the unrealized profits, and any sign of correction could provoke them to clock in profits and trigger a price correction.

Popcat Future Outlook

Despite the impending correction, it is not the end for Popcat price. Popcat has a market cap of $855 million and has already received a listing on the Binance perpetual contracts, which boosted its trading volume and broadened its speculation market.

The strong support of around $0.50 and the rising RSI could result in a price bounce above $1, forming a new ATH. However, this will require volume confirmation as the price tries to break out of the rising channel.