Journalist
Published:
- CAT had a strongly bullish bias after gaining almost 50% in one day.
- Volume indicators have shown consistent buying pressure in recent weeks despite consolidation at $0.00004.
Simon’s Cat (CAT) posted strong gains on December 16. It surged 48.6% on the day and its trading volume increased more than 10 times. This indicates great enthusiasm for buying the coin in breakouts.
Still, CAT struggled to convincingly move above the local resistance zone at $0.000063. Although it reached a new all-time high at $0.000068 on the day, the bulls failed to defend the old highs as support.
How deep will Simon’s cat crypto retrace?
Source: CAT/USDT on TradingView
Simon’s Cat cryptocurrency broke three-month highs in November but fell to the 75% level at the $0.00004 support zone. It tested this level several times, forming another range that extended to local highs $0.000063.
Monday’s daily close broke above the range highs and established a strongly bullish case for CAT in the coming days. A retracement over the past 24 hours could see Simon’s Cat cryptocurrency return to the local supports of $0.000055 and $0.000052.
The daily RSI, which was in bearish territory, rose on Sunday to reflect a change in sentiment. The OBV has been trending upward since the end of October and this trend has not yet stopped. Sustained buying pressure is expected to push prices higher in the coming weeks.
Rising Open Interest Rates Reflect Shift in Sentiment
Source: Coinalyse
The sharp increase in trading volume on December 16 was accompanied by a surge in open interest, from $18 million to $54 million. The funding rate also increased from 0.028 to 0.036.
Realistic or not, here is the market capitalization of CAT in terms of BTC
However, this figure was not as high as it was in early December and the sentiment was not as one-sided. After the short-term retracement towards $0.000055, further gains can be expected.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
