Popcat token has done well this month as it jumped to a record high of $1, a big increase from June’s low of $0.21. This article looks at the key price trajectories to watch this week.
Popcat, a relatively new Solana meme coin, has climbed the ladder and achieved a $895 million market cap. This trend has made it the eighth-biggest meme coin in the world. It has even flipped other tokens like Mog Coin, Cat in a Dogs World, Book of Meme, and Turbo.
Notably, Popcat’s rally has occurred in a high-volume environment. In the past few days, its 24-hour volume has averaged over $100 million.
Popcat’s rally was mostly based on momentum and fear of missing out (FOMO) among traders. We saw several big accounts X (Tweet) about the token and its potential to hit a $1 billion market cap, which it almost did.
Still, some analysts caution that the parabolic move could lead to a pullback in the near term. In a statement, Santiment, one of the most popular analysis companies in the crypto industry, said that the token could drop as investors start taking profits.
Popcat price chart analysis
Popcat token is our chart for the week because of its recent performance. The daily chart shows that it rose by over 362% between its lowest level in June and its highest point in July. It has risen by over 3,500% from its lowest point this year.
The chart also shows that the token has formed a doji candlestick pattern. A Doji is characterized by a very small body and two long shadows, implying that the asset opened and closed at the same level. It is a popular reversal sign.
The token remains above the 50-day and 25-day moving averages, which is expected based on last week’s rally. However, the volume trajectory, while elevated, has been falling after peaking in March.
Therefore, if Santiment’s view is correct, the Popcat token will erase some of last week’s gains and possibly retest the 23.6% Fibonacci Retracement point at $0.76. A break below that level could see it drop to the next support at $0.722, its highest swing on May 4th.
On the flip side, a jump above last week’s high will mean that bulls have prevailed and pushed it higher in the near term.
