Analysis
Popcat drops 17% from ATH, eyes $1 retest – Will it succeed?
The volatility around Bitcoin has affected the wider market, and Popcat saw an 18% price dip.
- The bout of volatility earlier this week saw POPCAT’s prices fall.
- The psychological $1 level might be retested as support.
Popcat [POPCAT] was down by 17.8% from its all-time high at $1.485. At press time, it was trading at $1.21, as Bitcoin [BTC] bulls struggled to push prices beyond $64k.
The volatility on the 7th of October gave way to bearish momentum across the crypto market.
POPCAT was also affected by this volatility, and it gave way to a minor retracement. Despite the price drop, the structure and price trend were strongly bullish.
The fair value gap could pull prices lower
Source: POPCAT/USDT on TradingView
The strong price gains on the 4th of October left behind a fair value gap on the daily chart. This zone extended from $1.07 to $1.13.
In the past 24 hours, the meme coin found support at the $1.15 level, but a deeper dip could arrive.
BTC also has a short-term bearish outlook, making a drop toward $1 more likely for Popcat. On the daily timeframe, the price action and technical indicators were firmly bullish.
The RSI continued to move above neutral 50 to show momentum was upward. The OBV has flattened out over the past week, and the trading volume was low.
This is a slight concern for bulls, since the strong momentum was not followed up by heavy buying.
Chances of a POPCAT range formation above $1
The Social Volume was high and has been trending upward since mid-September, and the Weighted Sentiment was also positive.
This could help establish hype for Popcat and could see prices go higher due to positive expectations.
Source: Coinglass
The trading volume drop in October was a blow for bullish expectations. It indicated that the market might need some time before it can expand northward again.
AMBCrypto found the liquidation heatmap gave some clues for this scenario.
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The $1.11 and $1.3 regions had a cluster of liquidation levels around them that could attract prices. Once swept, the meme coin’s price might see a reversal from these liquidity pools.
This could establish a short-term range for the memecoin.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
