- POPCAT has become the 8th largest memecoin by market capitalization, surpassing Mog Coin.
- Yet there is still a long way to go to achieve key psychological goals.
Unlike most memecoins, Popcat (POPCAT) showed striking price volatility during the post-election cycle.
Just two months ago, POPCAT caused a stir when it hit the $1 mark, leaving its competitors in the dust. However, it failed to attract the same influx of capital in November, and some may have written it off. But don’t count it out yet.
Despite recent setbacks, POPCAT has climbed to become the 8th largest memecoin by market capitalization. Even more intriguing, the token it overtook saw an increase of almost 80% in the last month.
Now, with a razor-thin gap between the two, could POPCAT be poised for a parabolic rally to an all-time high? The next target is $2. What are the chances?
Intense buildup is the need of the hour
Much of the gains made by POPCAT during the initial phase of the election rally, which propelled it to a new all-time high of $2.08 in less than two weeks, have since been erased due to large holdings. profits. Currently, the token is valued at $1.50 (at the time of writing).
As a result, POPCAT stands out as the only token among the top 10 meme tokens to have dipped into the red during the 30-day percentage rise.
However, upon closer inspection, POPCAT has shown signs of recovery over the past 7 days, outperforming its rivals with a 13% jump and a neutral RSI, suggesting potential momentum for a rebound.
However, there is a twist. During the mid-November cycle, POPCAT faced significant resistance around its current value, resulting in a pullback near $1.20. Clearly, the meme token now finds itself at a crucial juncture.
Source: Coinglass
To prevent history from repeating itself, the $1.50 level needs to turn into strong support.
The red stick, showing approximately $2 million worth of POPCAT tokens withdrawn by spot traders, signals a positive sign and suggests that the market is viewing the current price range as a potential bottom.
However, to confirm this, it will be crucial to monitor this metric in the coming days and assess how the market reacts to the current price. If the bottom holds, a potential rise to $2 could be on the horizon.
Nevertheless, the risks inherent in POPCAT remain
The aforementioned analysis clearly shows that POPCAT’s recent price action is highly speculative, with erratic fluctuations signaling significant fear among investors, all seeking quick and outsized returns in a short period of time.
So, without a stabilizing force to absorb this volatility, predicting a smooth trajectory for POPCAT to reach $2 becomes a difficult gamble, regardless of the optimism of the market as a whole.
Here’s where it becomes concerning. According to another report from AMBCrypto, whale addresses holding more than 100,000 POPCAT have noticeably reduced their holdings over the years, while smaller cohorts have held on.
Realistic or not, here is the market capitalization of POPCAT in terms of BTC
This trend signals a loss of confidence from big players, which could disrupt POPCAT’s long-term growth prospects, making an all-time high even further out of reach.
Therefore, unless this trend reverses, POPCAT may continue to attract speculative interest, but with no strong fundamentals to guide its long-term prospects, the path ahead remains uncertain.
