Connect with us
Active Currencies 15180
Market Cap $3,046,953,178,380.40
Bitcoin Share 56.94%
24h Market Cap Change $-3.24

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.

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

Share this article

  • 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

CAT 4-hour Chart

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

CAT Coinalyze

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

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.