The price of Popcat (POPCAT) has seen impressive growth recently, fueled by its $855 million market cap and listing on Binance’s perpetual contracts. But is a correction on the horizon?
Popcat Price Surges 72% in 30 Days
Popcat has surged 39% over the past week and a staggering 72% in the last 30 days, driven by renewed market optimism following a 50 basis point cut by the U.S. Federal Open Market Committee (FOMC). In just the last 24 hours, the meme coin gained 21%, pushing its price to $0.87. This makes POPCAT the second-largest gainer among the top 100 tokens. However, investors are wondering if this upward trend can last or if a price correction is near.
Is a Popcat Price Correction Imminent?
POPCAT has been on a consistent upward trend for 11 days without a major correction. A minor consolidation on September 12 formed a bullish pennant pattern, which led to another price surge, nearing the resistance zone around $1.
Popcat’s price is now trending within a rising channel, which could limit its ability to break out further. There’s still about 6% room for growth before reaching the channel’s upper boundary. However, if the price faces rejection at this level, a correction could occur, potentially dropping the price by 25% to $0.68.
If Popcat fails to hold above this support, it could slide further, down to $0.57, extending the correction by another 15%. This correction might be triggered by smart investors locking in profits after the recent surge.
Smart Money Signals a Potential Correction
Lookonchain reports that a smart whale purchased $4.13 million worth of POPCAT on September 11 and 12, making over $1.2 million in less than 10 days. The whale is sitting on unrealized profits, and any sign of a correction could push them to sell, accelerating the price drop.
Future Outlook for Popcat
Despite the potential for a price dip, the long-term outlook for Popcat remains positive. With a market cap of $855 million and its listing on Binance’s perpetual contracts, the token’s trading volume is growing, drawing more attention from investors.
The support level around $0.50 and rising RSI indicate that Popcat could bounce back above $1, potentially reaching a new all-time high (ATH). However, breaking out of the rising channel will require increased trading volume to confirm the move.