- Simon’s Cat (CAT) entered the price discovery phase and hit its ATH on 21st September.
- Key technical indicators hint at chances of a near-term slowdown.
Simon’s Cat [CAT] entered price discovery mode recently, hitting a new ATH of $0.0000464 on 21 September. The meme coin saw an exponential rally but has since slowed down after breaking out of its near-term rising wedge structure.
At the time of writing, CAT traded at $0.0000391, down by around 6.5% in the last 24 hours after witnessing a bearish breakout.
Simon’s Cat price prediction: Can RSI fuel a near-term rally?
Similar to most meme coins, CAT also experienced a rally soon after its launch amid huge investor excitement. This excitement helped the meme coin double in value in just over two weeks.
Despite the recent slowdown, CAT’s RSI (Relative Strength Index) showed early signs of a bullish divergence. The price reached higher highs, whereas the RSI has reached lower lows.
This divergence often signals a potential reversal in momentum, which could offer buyers a short-term rally before another pullback.
If the bullish divergence materializes, CAT could bounce back toward the $0.000041 resistance level and potentially its ATH levels in the coming sessions.
Source: TradingView, CAT/USDT
On the flip side, the recent rising wedge breakout increases the likelihood of a further pullback. If the selling pressure continues, CAT could find support at $0.0000352 and $0.0000308 before attempting a rebound.
The RSI hovered around 45 and was much lower than its moving average line. This indicated that the current momentum was shifting toward the sellers.
The MACD indicator (moving average convergence divergence) saw a bearish crossover, with the MACD line dropping below the signal line. This crossover typically signals the start of a short-term bearish phase. Should these lines fall below the zero level, it would confirm a stronger downtrend.
The road ahead
Simon’s Cat (CAT) has entered a critical phase after hitting a new ATH and subsequently pulling back from a rising wedge breakout. The bullish divergence on the RSI suggested a potential near-term rally, but traders should remain cautious as technical indicators like the MACD confirm weakening momentum.
A break above $0.0000405 could reignite bullish hopes, pushing the price toward $0.0000464, while a continued decline could test support at $0.0000352 and $0.0000308.
Traders should monitor these key levels closely and the broader market sentiment to capitalize on CAT’s next move.
