Why POPCAT traders can hope for a 50% rally after latest breakout

• POPCAT’s Long/Short ratio had a reading of 1.05, indicating strong bullish sentiment among traders
• POPCAT’s RSI suggested there may be enough room for the memecoin to rally

With the larger market on the road to recovery, Solana-based memecoin POPCAT caught the attention of many traders and investors. This, after the altcoin broke through a prolonged consolidation phase on the charts, one that lasted more than eight days.

POPCAT breaks out from prolonged consolidation

On the back of this breakout, the sentiment around POPCAT might be poised to shift from a downtrend to an uptrend. In fact, the memecoin already registered a price surge of over 23%. However, at press time, some minor price correction seemed to be underway. 

The last two and a half months have not been favorable for the memecoin, as it faced sustained bouts of downside momentum leading to a price drop of over 70%. In addition to the price decline, the memecoin has also faced resistance from a trendline. This has contributed to a price reversal whenever POPCAT’s price approached it.

POPCAT technical analysis and key levels

This time too, after recording a price surge of over 23%, the price reached the trendline. At the time of writing, it seemed to be facing a price correction at this level.

According to AMBCrypto’s technical analysis, if POPCAT breaches this strong trendline and closes a daily candle above the $0.75-level, there is a strong possibility it could soar by 50% to hit the next resistance level of $1.15 in the future.

Right now, the memecoin is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that it is on a downtrend.

On the positive side, with POPCAT’s Relative Strength Index (RSI) at 43, a technical indicator suggested there may be enough room for the memecoin to rally significantly in the future.

Bullish on-chain metrics

In light of the bullish technicals and the memecoin’s price action, intraday traders are now excited.

In fact, as revealed by the on-chain analytics firm Coinglass, they are significantly betting on the long side. The POPCAT Long/Short ratio had a reading of 1.05, highlighting the bullish of traders’ sentiment.

Additionally, 51.50% of top traders across the exchanges held long positions, while 48.5% held short positions. However, the percentage on the long side appeared to be consistently rising.