Popcat rallies 16% amid aggressive whale accumulation

Key Takeaways

• Popcat surged 16%, boosted by whale accumulation and rising derivatives curiosity. Regardless of bullish momentum, profit-taking and volatility might problem its path to $0.40. 

Popcat [POPCAT]  rallied 16.14% after efficiently defending $0.28, reaching a 3-week excessive of $0.3403 earlier than barely retracing to $0.336 at press time. 

On the similar time, the memecoin’s buying and selling quantity spiked by 113% reaching $84.7 million, reflecting vigorous on-chain exercise. However what’s fueling the surge – investor conviction or a mere technical bounce?

Popcat whales are accumulating 

Because the cryptocurrency market recovered over the previous 24 hours, Popcat whales entered the market to extend their holdings.

In accordance with Nansen, the memecoin’s high holders elevated their holdings by 14.28% to $634.39 million, as of reporting. 

Supply: Nansen

On the tenth July tenth, these holders acquired 8.5 million tokens, rising their complete provide held to 64.74%. With massive holders turning to aggressive accumulation, it displays a agency conviction within the memecoin’s prospects. 

As such, they anticipate that the Popcat worth will proceed to rise and see it as a great alternative to purchase now at decrease charges. 

Derivatives are eyeing extra positive aspects  

Notably, whereas whales have entered the rally, it seems they’ve performed so to ascertain strategic positions.

In accordance with CoinGlass, Popcat’s Open Curiosity (OI) soared 19.3% to achieve $172.9 million, whereas the Derivatives Quantity spiked 94.55% to $551.34. 

Supply: CoinGlass

Notably, a surge in OI alongside quantity confirms elevated exercise within the futures quantity. On the similar time, Popcat’s Lengthy Brief Ratio surged to surpass 1 throughout all main exchanges. 

The general Ratio spiked to 1.1313, signaling robust demand for lengthy positions. Usually, the next demand for longs implies that traders are actively betting on costs to rise. 

Holders get grasping

Because the Popcat worth surged, so did the urge to comprehend revenue amongst all market contributors.

In accordance with CoinGlass knowledge, Spot Netflow surged to $485.9K then barely dropped to $278K, on the time of writing. 

Supply: CoinGlass

Such a spike implies that traders who’ve been underwater have been cashing out regardless of the value surge.

The truth is, Provide on Exchanges elevated by 11.92% to $404.2 million, reflecting huge promoting exercise. 

Can Popcat maintain latest positive aspects?

In accordance with AMBCrypto’s evaluation, Popcat skilled a robust upswing as consumers, significantly whales, returned with elevated energy. 

Consequently, the memecoin’s Stochastic RSI surged to 86.73, at press time, signaling robust upward momentum.

Nevertheless, with this metric reaching these ranges, it additionally warns of potential brewing volatility, as consumers may change into exhausted. 

Supply: TradingView

In the identical gentle, the Relative Power Index (RSI) surged to 54, touching bullish territory, additional confirming the presence of purchaser momentum.

Due to this fact, underneath these circumstances, the place consumers are strongly holding and momentum is strengthening, Popcat is poised for extra positive aspects.

Thus, if sentiments maintain, the memecoin may reclaim $0.36 and goal $0.40. 

Nevertheless, the continuation of the uptrend relies on the actions taken by holders on exchanges. If revenue taking skilled over the previous day persists, the memecoin will face downward strain and drop to $0.28 once more.