It appears that the popular Solana-based meme coin Popcat (POCAT) is outperforming major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). On October 23, 2024, when major cryptocurrencies struggled to gain momentum, POPCAT topped the crypto market with an impressive price surge of over 12%.
Reasons for the POPCAT Price Increase
The potential reason for this notable upside rally is that investors and traders continuously betting on the meme token. According to the on-chain analytics firm Coinglass, POPCAT’s Long/Short ratio currently stands at 1.03, indicating strong bullish sentiment among traders. Meanwhile, its open interest has jumped by 16.2% in the past 24 hours and has been steadily rising.
This growing open interest suggests traders strongly believe in the meme coin and that they might be placing more bids on long positions compared to short positions.
Traders and investors often use the combination of rising open interest and a long/short ratio above 1 when building long positions.
POPCAT Technical Analysis and Upcoming Levels
According to expert technical analysis, POPCAT has been trading within a boundary of $1.2 and $1.5 for the past two weeks. Looking at the daily chart of meme coins, the price is currently near the upper boundary, which is acting as a strong resistance level.
If POPCAT breaches this level and closes a daily candle above the $1.5 level there is a strong possibility it could reach a new high in the coming days. However, if it fails to breach the resistance level of $1.50, there is a strong possibility it may experience a price decline in the coming days.
At press time, POPCAT is trading near $1.44 and has experienced a price surge of over 13% in the past 24 hours. During the same period, its trading volume jumped by 5%, indicating rising participation from traders and investors compared to the previous day.
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