- Popcat has seen an increase in volatility which could be good news for traders on lower time frames.
- Technical indicators suggest that bullish momentum is likely to win out soon.
Bobcat [POPCAT] It was about to break above a local resistance area that was also a fair value gap. On-chain metrics showed that the sentiment was likely negative, but traders could have a few profitable days if POPCAT continues to trend upwards.
The volatility of the past few weeks has caused a significant amount of liquidation, most of which has been long positions in July. Here’s why the short-term outlook is bullish, even though Bitcoin has faced resistance around the $60,000 area.
Late buyers may wait until this happens before bidding.
Source: POPCAT/USDT on TradingView
Based on the late June high, a set of Fibonacci retracement levels have been charted. The volatility over the past two weeks has seen POPCAT retest the 61.8% level and test the 78.6% levels around $0.403 and $0.319 respectively.
On the 12-hour chart, the sharp price drop on July 3rd left a gap at fair value (white box). This area is likely to act as resistance and may hold back the bulls.
However, the OBV indicator has been trending higher despite the recent pullback in prices. The CMF indicator has also risen above +0.05 to show strong capital inflows.
The momentum was also bullish with the RSI reading at 58, indicating that the meme coin is likely to break the $0.59 resistance level.
Exchange rate trends and sentiment are mixed.
source: Santiment
Sentiment has been consistently negative over the past two weeks. Price volatility has started to pick up over the past 24 hours as prices have been rising.
The daily RSI reached 62, indicating that speculative traders can look to buy and take advantage of the bullish momentum to make profits.
source: coin glass
The net market flow chart over the past two days shows that, despite the price rising slowly, POPCAT has not been overwhelmingly deposited on exchanges.
This means that there is a chance that prices will continue to rise and that selling pressure has not been a major obstacle.
source: coin glass
Read Popcat’s book [POPCAT] Price forecast 2024-2025
The volatility has led to a reduction in both long and short positions since June 26. Traders can watch this chart when the token rises above $0.6.
A series of short sell-offs can cause prices to rise, which speculative traders can use to make profits.