- Simon’s cat crypto has strong bullish momentum and volume
- The divergence the meme showed near its two-month high could trigger a pullback
Simon’s cat [CAT] saw a huge rally this week. The meme coin has been trading within a certain range since mid-September. It shot up from the range low on October 21 after Binance announced the token’s listing on its website. derivatives market.
At the time of writing, CAT was trading just 6.4% below the highs in the range. However, there was a difference between price and momentum. Will Simon’s Cat Crypto See a Deep Retracement?
Signs of overextension
Source: CAT/USDT on TradingView
The range formation (purple) extended from $0.0000236 to $0.0000466. The midpoint of this range was at $0.000035 and has served as both support and resistance over the past two months.
The Money Flow Index is sometimes called the volume-weighted RSI because it includes both trading volume and price data. The oscillator reached lower highs over the past two days as the price rose higher.
This is a bearish divergence and a sign that the price is likely to experience a decline soon. Given the proximity to the range highs, a rejection from the $0.0000466 level is likely.
The support levels at $0.000038 and $0.000035 would likely provide a good buying opportunity in case of rejection.
Open Interest and financing interest trends
While the price of Simon’s cat crypto has almost doubled since Monday, Open Interest has increased by around 500%. On the 21st the stock was $6.7 million and at the time of writing it was $36 million.
Read Simon’s Cat’s [CAT] Price forecast 2024-25
However, funding levels have cooled in the past 48 hours. This showed that bullish sentiment was losing the strength it showed earlier this week.
Overall, sentiment was still bullish, but a pullback towards the mid-range is likely.
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