POPCAT surges close to 35% in a day, but worrying signs emerge

• Popcat has had a bullish structure over the past month.
• The strong momentum and buying pressure gave bulls a good chance to move to $1 soon.

Popcat [POPCAT] posted a 34.15% move higher within the past 24 hours of trading, and the volume also climbed appreciably. This came alongside a Bitcoin [BTC] price bounce past the $60k resistance level.

The psychological $1 resistance was overhead for the memecoin, and it has already forced the bulls back in July. What would happen during the current move?

Popcat targets based on extension levels

Fibonacci levels plotted based on the POPCAT price drop in late August showed that the 78.6% retracement level was beaten during the recent price surge.

The market structure has been bullish since the final week of August.

The RSI on the 12-hour chart showed bullish momentum has reigned over the past ten days, and the OBV was steadily rising. Together they showed upward momentum due to rising buying pressure.

This was a sign that the rally was solid and likely to continue. The next targets would be the $1 and $1.18 resistance levels, the local high, and the Fibonacci extension level.

Spot CVD goes against the OBV findings

The recent 23% move saw the Open Interest climb from $49.2 million to $69 million, showing active participation from bulls in the Futures market.

Speculators were eager to go long, hoping to earn some profits from the POPCAT move.

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The high Funding Rate also suggested the same thing over the past couple of days. Yet, the spot CVD has been flat for a week, showing buying and selling were balanced in the spot market and contradicting the OBV.

However, overall, the buyers have an advantage in the short term.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion