Market Direction

POPCAT strong rally, correction ahead?

Published: Oct 1, 2024

POPCAT has moved above the $0.96-$1.00 resistance but could see a short-term pullback due to overbought conditions.

Following a breakout of the major downtrend line, POPCAT has moved higher and broken above its major horizontal resistance at $0.96 to $1.00, although it continues the battle in that area.
Locally, the $0.95 level could be short-term support, but beneath that, it's likely we see a retest of $0.77. However, with the macro looking so strong, we might be able to avoid a more significant correction.
What we notice is that the RSI is overbought, and it has printed a bearish divergence (a higher high in price with a lower high on the oscillator) in overbought territory. This is usually a bearish setup, and it may fuel a short-term pullback.
If the price can break beyond $1.08, it's possible we see the price sharply extend to the $1.20 to $1.40 area.

8. POPCAT price breaking above trendlines with RSI showing strong momentum, suggesting continued bullish trend and possible further gains.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

Cryptonary's take

Price has rallied 115% in just 20 days, so it's possible we could have a short-term pull back at some point soon. However, with upside potential still so great, this would encourage us to continue holding our Spot positions as we do expect price to be substantially higher over the coming weeks, even if we see a pullback in the short-term.