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Popcat, a meme token on the Solana blockchain, saw a remarkable rally, emerging as the highest gainer among the top 100 crypto assets over the past day.
At press time, Popcat (POPCAT) was up 6.2%, exchanging hands at $0.9918. The meme coin also saw 7.4% gains over the past week, with the highest gains recorded on Sept. 25 as both its price and market cap surged past $1 and $1 billion, respectively, marking their all-time highs.
The memecoin’s market cap now stands at $970 million, with its daily trading volume hovering around $107 million.
According to an X post by the pseudonymous analyst Bluntz, Popcat is showing positive signs again, with a healthy ABC correction pattern visible on the 4-hour chart, just below its all-time highs. The setup typically indicates a temporary counter-trend movement within a larger trend.
Traders watching this pattern often interpret it as an opportunity to enter long positions in anticipation of the next upward move. Based on this, Bluntz speculated that the next upward move could help POPCAT break past its previous ATH.
A look at Coinglass data shows POPCAT’s open interest has surged by 12.6%, hitting an all-time high of $125.71 million at the time of writing, reflecting growing trader activity which seems to be fueling the meme coin’s ongoing rally. Additionally, the weighted funding rate has reached a record high of 0.0484%, further reinforcing the coin’s upward momentum.
Social sentiment surrounding the memecoin was also largely bullish, with 70% of participants expecting further gains in the short term, per CoinMarketCap data.
On the 1D chart, POPCAT currently stands above its 50-day EMA suggesting that the asset is gaining upward momentum and traders may view it as a potential buy signal for further gains.
The surge has propelled POPCAT close to the upper Bollinger Band, which currently sits at $1.1075. This indicates that the asset will soon reach an overbought zone, though it also supports the bullish momentum in the short term.
Additionally, the Commodity Channel Index sits at 78.87, adding weight to the idea that POPCAT’s rally still has room for further gains before reaching overbought levels.
Should POPCAT continue its upward momentum and break through the $1.1075 resistance, the next psychological target could be $1.2. Conversely, failure to hold current support levels could lead to a pullback, with the middle Bollinger Band around $0.8497 acting as a key support zone.
This article first appeared at crypto.news
