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POPCAT crypto faces THIS key resistance—Its breakout depends on…

2min Read

Assessing the odds of POPCAT extending its recovery amid whale sell-off

Popcat
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  • POPCAT crypto has bounced +100% from its recent lows of $0.15. 
  • A key whale has intensified profit-taking during the recovery. 

Popcat [POPCAT] appears to have bottomed after declining 90% and erasing nearly all its 2024 gains. So far in February, the memecoin has rallied substantially from its recent lows of $0.15.

This has raised hopes it could claw back its lost ground and eye the $1 value. But whales have begun selling into the uptrend to lock in profits. 

According to the blockchain analysis platform SpotOnChain, an early whale dumped ten million POPCAT tokens worth $3.15M to Bybit.

The whale recorded a $7.32 million in profit (633% gain) and was only left with about one million POPCAT tokens. 

Will whale sell-off cap POPCAT recovery?

Popcat

Source: POPCAT/USDT, TradingView

On the daily price chart, POPCAT crypto defended the $0.20 level and recovered steadily. However, immediate overhead resistance levels are at $0.40 and $0.66.

Based on current data, it is unclear if the memecoin can extend the recovery beyond $0.40. Notably, the daily RSI has recovered but has not yet flipped the neutral level into support.

Since December, the daily RSI faced rejection at this level, capping POPCAT’s uptrend. If the trend repeats, POPCAT could stall.

Additionally, the OBV (On-Balance Volume) fluctuated below the key level, suggesting volume stagnation, which could delay a strong extended rally in the short term.

If the memecoin stalls at $0.40, a retracement to $0.30 (cyan) could offer a buying opportunity.

Popcat

Source: POPCAT/USDT, TradingView

On-chain signals rebound

That said, the February recovery also saw improvement in key on-chain signals—sentiment and social volume. 

Unlike December, when the Weighted Sentiment was firmly in the negative territory, the indicator flashed positive signals in February. It suggested that the market outlook on POPCAT improved.  

Popcat

Source: Santiment

Similarly, market interest and overall demand increased, as shown by spikes in Social Volume. This demonstrated increased engagement with the memecoin across social media, potentially leading to further demand on the price chart.

However, unless the expected demand pushes the daily RSI above the neutral level, further recovery could stall in the short term.

 

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Benjamin Njiri is a Crypto Analyst and Journalist at AMBCrypto who specializes in technical analysis and identifying emergent market trends. He excels at breaking down complex chart patterns and on-chain data to make them accessible and actionable for investors. His rigorous analytical approach is founded on his academic background as a Telecommunication Engineering graduate. This discipline has equipped him with an expert understanding of signal processing and data analysis, allowing him to systematically filter market noise from true trend signals with engineering precision. Armed with this unique perspective, Benjamin focuses on providing clear, data-driven insights into the digital asset landscape. His work is dedicated to demystifying the intricate world of cryptocurrencies, empowering readers to understand the forces that shape the market and to navigate it with greater confidence.
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