Analysis

Simon’s Cat crypto up 12% in a day, 86% in 3 – What’s behind the surge?

2min Read

On the 21st of October, it skyrocketed from the range’s lows after Binance announced the token’s listing on its derivatives market.

Posted: October 24, 2024

By: Akashnath S

Journalist

Edited By: Ann Maria Shibu

Simon's Cat crypto up by 86% in three days, flashes warning signs

Akashnath S

Journalist

Edited By: Ann Maria Shibu

Posted: October 24, 2024

Simon’s cat crypto has a strongly bullish momentum and volume
The divergence the meme exhibited close to the two-month range high could see a pullback

Simon’s Cat [CAT] saw a huge rally this week. The meme coin had been trading within a range since mid-September. On the 21st of October, it skyrocketed from the range’s lows after Binance announced the token’s listing on its derivatives market.

At press time, CAT was trading just 6.4% below the range highs. However, there was a divergence between the price and momentum. Will Simon’s cat crypto see a deep retracement?

Signs of overextension

Source: CAT/USDT on TradingView

The range formation (purple) extended from $0.0000236 to $0.0000466. The mid-point of this range was at $0.000035 and has served as both support and resistance in the past two months.

The Money Flow Index is sometimes referred to as the volume-weighted RSI, since it incorporates trading volume as well as price data. The oscillator formed lower highs in the past two days while the price surged higher.

This is a bearish divergence and is a sign that the price would likely see a pullback soon. Given its proximity to the range highs, a rejection from the $0.0000466 level is likely.

The $0.000038 and $0.000035 support levels would likely present a good buying opportunity in case of rejection.

Open Interest and funding rate trends

Source: Coinalyze

While the price of Simon’s cat crypto nearly doubled since Monday, the Open Interest has increased by around 500%. It was at $6.7 million on the 21st, and stood at $36 million at press time.

Read Simon’s Cat’s [CAT] Price Prediction 2024-25

However, the funding rate has cooled down in the past 48 hours. This showed that bullish sentiment was losing the strength it showed earlier in the week.

Overall, the sentiment was still bullish, but a pullback toward the mid-range level is likely.

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

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Akashnath S

Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.