POPCAT’s on-chain indicators and technical analysis suggest that bulls have the upper hand in the asset.
POPCAT's open interest has increased by 3.9% over the past 24 hours, indicating growing interest from traders.
The famous meme coin on the Solana platform [SOL] called Popcat [POPCAT] is making huge waves in the crypto space thanks to its impressive performance.
However, in recent days, it has been struggling to gain momentum, undergoing a price correction alongside major Cryptocurrencies such as Bitcoin [BTC] and Ethereum [ETH].
POPCAT looks promising
POPCAT looks bullish at the time of writing, as it has formed a bullish double bottom price pattern on the daily time chart.
After a price increase of more than 35% in just three days, POPCAT has returned to its original range where it experienced a significant price movement and is on track to form a bullish price pattern.
Source: TradingView
Based on historical price momentum, if POPCAT sustains above $1.1735, there is a high chance it could surge 22% to reach $1.5 in the next few days.
On the other hand, if it fails to hold this level and closes the daily candle below $1.1735, we could see a significant price decline.
POPCAT's bullish outlook is further reinforced by on-chain analytics firm Coinglass. Notably, its open interest has increased by 3.9% over the past 24 hours, indicating growing trader interest in the memecoin.
Key liquidity levels
At the time of writing, POPCAT's key liquidity levels are near $1,168 on the bottom and $1,259 on the top, with traders being overleveraged at these levels, according to data from Coinglass.
Source: Coinglass
If the recent market trend remains unchanged and POPCAT's price rises to $1,259, nearly $2.56 million worth of short positions will be liquidated.
Conversely, if the trend changes and the price drops to $1,168, more than $4.01 million worth of long positions will be liquidated.
Combining these on-chain indicators with technical analysis, it appears that the bulls are in control at the moment and could trigger the liquidation of short positions, leading to a significant price increase in the coming days.
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