POPCAT faces possible pullback amid overbought RSI

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• Another that was called perfectly in the last Market Direction; 'we would expect that if the wider market moves back up to the recent highs, this might provide POP with the ammunition needed to break higher and finally substantially clear back above $1.00. Positive labour market data on Friday could give us this.
• POP held fantastically beneath $1.00, ranging for two weeks between the mid $ 0.80 and $1.05. Friday's positive labour market data was the catalyst we needed to see POP finally break above $1.10 and go into price discovery.
• Charting-wise, we're now in a new range.
• The RSI is very overbought on the Daily timeframe, printing 78. The last time we saw this was when the price broke above $0.02.
• When a large move like this happens in a 'Blue Chip Meme, 'it's normal to see traders profit-take and, therefore, price potentially pull back a tad.
• In terms of downside, we're used to huge moves, but we'd expect $1.00 to hold as new support. We'd also be somewhat surprised to see this level even be retested again.

• Next few days prediction: Bearish ($1.20 to $1.40)
• Next 7 days prediction: Neutral
• Next 7 days price target: $1.40

Cryptonary's take

In terms of calling POP here, it's difficult as it's in price discovery. Despite indicators being overbought, if the market runs again, the price could just continue into the $1.60 to $1.80 range, although we'd expect this to be a local top for the time being if this were to happen.

But, indicators are overbought here, so it's possible we will see a pullback from current prices as traders book profits. This wouldn't convince us to sell Spot bags, though, as we think mid and long-term, there's a long way to go here.