Popcat, the popular Solana meme coin, has seen significant gains this week as investor sentiment improved and futures open interest surged.

On September 12, Popcat rose by over 13%, reaching an intraday high of $0.6812, its highest level since August 29. The token has surged by over 152% from its low last month.

Data from the futures market shows a strong uptrend in open interest, which hit a high of $63 million—its highest level since July 27 and significantly higher than last month’s low of $17 million.

Trading volume on exchanges is also rising, with data indicating it stood at over $139 million, the highest level since August 24. This suggests strong demand for the coin.

A notable example is a whale who swapped Dogwifhat tokens worth $800,000 for Popcat. Subsequently, he traded Solana for the token. Another trader initiated a dollar-cost averaging trade worth $4 million.

Meanwhile, a crypto analysis firm has maintained a bullish view on Popcat and upgraded its price target to $40. With the coin currently trading at $0.6812, this implies a potential rise of almost 5,800% from current levels.

Historically, some meme coins have had similar parabolic moves. For instance, Dogwifhat jumped by over 5,000% between its lowest and highest points this year. Popcat also surged by over 1,000% between its lowest point in April and its all-time high in July.

One of the bullish cases for Popcat is its wide ownership distribution. According to recent data, it has over 49,000 holders, with the top ten biggest holders accounting for just 15% of all tokens, and the top 50 accounting for 22%. In contrast, Brett’s top ten wallets hold 71% of all tokens, and Pepe’s top ten accounts hold 45%. This makes Popcat less susceptible to manipulation by large holders compared to Brett and Pepe.

However, technically, there is a risk that Popcat could pull back in the near term before resuming its uptrend. On the 4-hour chart, it is forming a head and shoulders pattern, a popular bearish signal. It is about to complete the right shoulder, indicating a potential deep reversal in the near term.

Stay updated with the latest cryptocurrency news and trends at Global Crypto News.

Post Views: 4