- POPCAT appeared to have a bullish market structure on the daily time frame
- Lower time frames showed that bullish sentiment was weak
POPCAT trended higher on the daily chart, registering a higher low at $1.28 on October 25. The momentum seemed to slow around this time, but managed to reach a higher high in recent days.
Bitcoins [BTC] The $72.7k correction sidelined many overzealous bulls. POPCAT also registered a decline of 14.45% over the past three days but is likely to continue its upward trend.
The market structure favors POPCAT bulls
Source: POPCAT/USDT on TradingView
The 23.6% Fibonacci extension level was tested and from there the correction occurred. The higher highs and higher lows kept the market structure bullish. A daily session below $1.28 would turn the structure bearish.
To reverse the trend bearishly, a new lower high and a lower low must then be set. Such a scenario would mean that POPCAT is preparing for a pullback, possibly below the $1 mark.
At the time of writing, this scenario did not seem likely. The CMF stood at +0.05, indicating significant capital flows into the market. The Awesome Oscillator also highlighted the bullish momentum behind the memecoin since the second week of September.
The declining open interest indicates doubt
The price rise above $1.5 a week ago caused Open Interest to slowly move higher. However, due to the correction from October 30, the OI fell along with the price. This indicated bearish sentiment in the futures market.
The CVD spot also fell a considerable distance during the same period. This combination of lukewarm interest from buyers in the spot and futures markets showed bearish short-term sentiment, although the price action in the higher time frame indicated bullishness.
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The funding rate was near zero – another sign of weak bullishness. Overall, traders should be cautious in the coming week. The 2024 elections in the United States represent some uncertainty that the market abhors. Clearer price developments are likely to emerge after this major event has been decided.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer