CASHCAT rallies 32% as DeFi utility grows – Is the correction over?
Examining CASHCAT's next price targets, as its double bottom hints at the end of the correction.
Cash Cat [CASHCAT] is leading the top 200 coins by market cap in terms of daily gains, recording 32% at the time of press. Notably, its trading volume also surged by more than 65%, surpassing $40 million.
The gains have brought the monthly sum to 88%, while the year-to-date (YTD) hit 25.31K%, as per CoinGlass.
Furthermore, the sentiment towards memecoin had dipped, but this could change. There are two key fundamentals that have helped in this shift, reinforcing a potential bottom for the memecoin.
New DeFi utility and memecoin activity returns
As CASHCAT showed signs of recovery after bouncing from the $0.15 zone, its sentiment was quickly shifting. This surge was driven by a new DeFi utility created on Morpho’s platform on Robinhood Chain.
That is, CASHCAT/USDG with live yield incentives was listed on Api3, a lending market on Morpho, at 62.5% loan-to-value (LTV). This move attracts yield-seeking capital into the memecoin, creating buying pressure. Even from the broader memecoin sector, CASHCAT was benefiting.
The sector’s trading activity surged after Arc went live. In fact, memecoin launchpads drove over 80% of Arc’s DEX volume on the first day. Launchpads accounted for $336.26 million, while other DEXs drove $74.56, a total of $410 million.
The technical outlook also supports the likelihood of retesting CASHCAT’s all-time high (ATH) of $0.3131. Here is why:
Has CASHCAT’s correction ended?
After staying in correction for the better part of September, CASHCAT appears to be ending this phase. The price has broken above the 100 and 200 EMAs on the 4-hour chart following today’s surge from $0.15. At press time, the Bull Bear Power (BBP) was green with bars increasing in size, indicating bullish momentum.
CASHCAT is currently trading above the upper boundary of its triangle pattern. The next path forward faces resistance at $0.24 and $0.28, with buying activity showing signs of decline.
This decline is evident, as the Long/Short Ratio was at 1.73, down from 2.85 on the 8th of September, indicating a decrease in buying pressure even though bulls remain as the dominant participants.
For CASHCAT to hit $0.31, it has to hold above $0.20, $0.18, or $0.15 in the worst-case scenario, where the memecoin formed a double bottom. A breakdown of $0.15 would expose demand levels at $0.12 and $0.10.
Final Summary
- Cash Cat rallied over 32% in the past 24 hours, leading all top 200 cryptos by market cap amid new DeFi utility and a resurgence in memecoin activity.
- CASHCAT formed a double bottom at $0.15 as the price broke above the 100 and 200 EMAs despite a decline in buying pressure.
