The Solana-based memecoin Popcat (POPCAT) is generating significant buzz in the cryptocurrency market, demonstrating impressive price momentum that has caught the attention of both whales and everyday investors alike.
On October 14, blockchain transaction tracker Lookonchain revealed that a prominent whale purchased a staggering $1.94 million worth of POPCAT on Binance, the world’s largest cryptocurrency exchange. This whale acquired an impressive 1.38 million POPCAT tokens at an average price of $1.41, signaling strong confidence in the memecoin and hinting at a potential upside rally in the near future.
Interestingly, this substantial purchase follows a sell-off of $4.44 million worth of Dogwifhat (WIF), another popular meme coin. Having previously invested in WIF but incurred losses, the whale’s shift to POPCAT appears to be a strategic move, capitalizing on its recent price performance.
Analysis of POPCAT’s daily chart indicates that the memecoin may face a short-term price correction before embarking on a significant rally. Historical price momentum suggests that if POPCAT can close a daily candle above the $1.56 level, there is a strong possibility of reaching a new all-time high in the coming days.
The bullish sentiment surrounding POPCAT is reinforced by on-chain metrics. According to the analytics firm Coinglass, the Long/Short ratio for POPCAT currently stands at 1.30, indicating a predominantly bullish market sentiment among traders. However, in the past 24 hours, the future open interest has dropped by 10.5%, suggesting that more positions were liquidated than newly opened during this time frame.
Currently, 56.5% of top traders hold long positions, while 43.5% hold short positions. The data also reveals critical liquidation levels: on the lower side at $1.348 and on the upper side at $1.399. Traders are currently over-leveraged at these levels, which could lead to significant price movements.
If the price rises to $1.399, it could trigger the liquidation of nearly $1.62 million worth of short positions. Conversely, a decline to $1.348 could liquidate approximately $2 million worth of long positions. This dynamic illustrates the current dominance of bullish sentiment among traders, who believe in POPCAT's potential for price appreciation.
As of press time, POPCAT is trading near $1.36, reflecting a price decline of over 7.55% in the past 24 hours. However, trading volume has surged by 40% during the same period, indicating heightened participation from traders and investors likely attracted by the recent price movements.
With significant whale activity, bullish on-chain metrics, and a dynamic trading environment, POPCAT is positioned for potential growth in the coming days. As the memecoin landscape continues to evolve, traders will be watching closely for key price levels that could dictate the next moves in this exciting cryptocurrency market.
October 2024, Cryptoniteuae