- With a spike to $0.60, Popcat (POPCAT) is back in the top 100 cryptocurrencies by market capitalization.
- Declining Open Interest could prevent Popcat’s price from hitting $0.70 even with optimistic indicators.
- POPCAT may increase to $0.70 if the RSI crosses above the neutral line; if not, it may decrease to $0.51 or $0.40.
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Throughout the year, there has been a lot of interest in meme currencies created on Solana. These tokens had been neglected lately, but today they were once again included in the top 100 by market capitalization thanks to Popcat (POPCAT).
The meme coin POPCAT, which has a cat motif, increased to $0.60 in early trading on Wednesday. Even though the price has now dropped below $0.56, this on-chain research looks at the cryptocurrency’s potential future.
Popcat Rises Once More, but Freedom Is Not Here Yet
When POPCAT’s price touched $0.99 in July, it came dangerously close to reaching the important benchmark of a $1 billion market valuation. To put things in perspective, the market cap is determined by multiplying the price by the quantity in circulation. Any increase in price for a cryptocurrency with a fixed supply immediately increases its market capitalization.
That was the situation at the previously reported all-time high of the meme coin. This time is no exception, as the market capitalization has increased to $585 million following a 10% price gain.
Even though the token’s market capitalization has dropped once more, its inclusion in the top 100 cryptocurrencies may spark interest in Solana joke coins once more.
However, Open Interest (OI) could provide obstacles for its comeback. The entire number of outstanding contracts in the market is represented by open interest. An spike in OI suggests that traders are taking on greater positions and investing more money in contracts pertaining to cryptocurrencies.
Conversely, a decline in OI indicates that positions that are already open are being closed, which reduces liquidity. OI for POPCAT had previously risen, reaching over $30 million, but it is currently down to $27.80 million.
A review of the past reveals that the price increase of meme coins has been mostly dependent on POPCAT’s Open Interest. Therefore, it might be difficult for the token to restart its upward trajectory if the value keeps declining.
Forecasted POPCAT Price: The Cat Eyes $0.70
The Parabolic SAR suggests that POPCAT may be in a prime entry position based on the daily chart. Potential reversals can be detected by the Parabolic Stop and Reverse (SAR) indicator, which also tracks trend direction.
There may be a chance to sell when the dotted lines are over the asking price. On the other hand, if the lines are below the price, it indicates a good time to buy, as POPCAT is at the moment.
However, the Relative Strength Index (RSI) must pass above the neutral line in order for the bullish outlook to be validated. The momentum indicator, the RSI, is currently somewhat below the 50.00 midpoint but close to it.
POPCAT’s price may continue to rise, maybe reaching $0.70, if the RSI crosses over the neutral line. But the token might find it difficult to get there if Open Interest keeps falling. The price might then decrease to $0.51 or perhaps $0.40 in that scenario.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
