Memecoins
POPCAT bounces back as traders shy away from overheated DOGE: What now?
The memecoin rivalry is heating up, and with POPCAT’s double-digit surge, all eyes are on where the money flows next.
- POPCAT traders have strategically seized the recent “dip” to bolster their holdings.
- Another significant factor is also propelling the surge.
After a mid-week pullback, Popcat [POPCAT] bounced back with an impressive 11% surge in the last 24 hours, securing its spot among the top gainers.
While Dogecoin [DOGE] dominates the weekly leaderboard with over 30% gains, it only managed a modest 2% daily increase, significantly trailing behind its feline counterpart.
This resurgence prompted AMBCrypto to explore potential patterns shaping the memecoin market.
Uncovering a key POPCAT strategy
Interestingly, as Bitcoin [BTC] began its ascent a week ago – marking the start of a bull cycle that pulled it out of a four-month slump – POPCAT hit its ATH of $1.50 on the same day.
However, it couldn’t keep the momentum going, now trading at $1.37 and facing some notable pullbacks along the way.
In the meantime, DOGE, the leading memecoin by market cap, has surged an impressive 30% to $0.15.
It’s clear that investors have flocked to DOGE as their altcoin of choice, eager to diversify away from BTC in a bid to mitigate risk.
Yet, an AMBCrypto report suggests that DOGE may be overheating and could be due for a correction soon. The rising popularity of POPCAT could further solidify this trend, keeping DOGE from making further gains.
Source: Coinglass
In a significant exploration, AMBCrypto uncovered a key strategy employed by spot traders to manipulate the memecoin market.
Exactly a week ago, when POPCAT dropped to a local low of $1.23 just three days after hitting its ATH, traders withdrew a massive stash of tokens – amounting to $4 million – from exchanges.
This price point clearly served as a target for a dip, marking the start of an aggressive accumulation phase.
Additionally, these buyouts capitalized on the fear surrounding DOGE’s recent retreat. With DOGE posting a daily gain of over 7%, concerns about overheating prompted traders to shift their focus to POPCAT. However,
The trend might change
A closer look at POPCAT’s hourly price action reveals that an imminent breakout seems unlikely, with the MACD turning bearish and RSI in decline.
However, this doesn’t guarantee a pullback either. With active accumulation and DOGE potentially faltering, POPCAT could still continue its upward climb.
The rivalry between these two memecoins is heating up, with traders closely watching their next moves.
Read Popcat’s [POPCAT] Price Prediction 2024–2025
POPCAT has established $1.23 as a local low, but a breakout could happen if capital shifts from DOGE to POPCAT, especially after its strong double-digit surge.
Ultimately, the memecoin market is a battleground, and only one winner will emerge.
