- Popcat saw an increase in volatility, which could be good news for traders with shorter time frames.
- The technical indicators showed that the upward momentum is likely to gain quickly.
Popkat [POPCAT] was about to break out past a local resistance area that also formed a fair value gap. The on-chain metrics showed that weighted sentiment was negative, but traders could see a few days of profitability if POPCAT continues to move higher.
The volatility of recent weeks has led to many liquidations, most of which involved long positions in July. This is why the near-term outlook is bullish even as Bitcoin faced resistance around the $60,000 area.
Late buyers can wait for this before bidding
Source: POPCAT/USDT on TradingView
Based on the late June rally, a series of Fibonacci retracement levels were plotted. Volatility over the past two weeks has seen POPCAT retest the 61.8% levels and nearly test the 78.6% levels at $0.403 and $0.319 respectively.
On the 12-hour chart, the dramatic price drop on July 3 left a fair value gap (white box). This zone would likely serve as resistance and could push the bulls away.
However, the OBV has been on an upward trend despite the recent price retracement. The CMF also rose above +0.05, indicating strong capital inflows.
Momentum was also bullish with an RSI reading of 58, indicating that the meme coin was likely to break past the $0.59 resistance.
AC trends and sentiment are at odds
Weighted sentiment has been consistently negative over the past two weeks. Price volatility started to increase over the past 24 hours as prices moved higher.
The daily RSI stood at 62, and all told, this indicated that scalp traders can go long and use the upside momentum to make profits.
The spot netflow chart over the past two days showed that even though POPCAT’s price slowly climbed higher, it was not overwhelmingly dumped on exchanges.
This meant that there was a chance that prices would continue to rise and that selling pressure was not a major hurdle.
Read Popcats [POPCAT] Price forecast 2024-25
Volatility has decimated both long and short positions since June 26. Traders can keep an eye on this chart when the token rises above $0.6.
A wave of short liquidations can cause a price increase, which scalp traders can use to make a profit.
