Solana Meme Coin POPCAT Explodes by 360% Amid Mainstream Attention: Is Massive Correction Underway?
thecryptobasic.com 22 July 2024 16:59, UTC POPCAT, a Solana meme coin, has garnered significant interest from mainstream traders following a remarkable price surge of 117% within the last two weeks.
Santiment, a market intelligence platform, recently posted on X about the remarkable feat of the Solana-based meme coin. The update emphasized that POPCAT has more than doubled in value since July 11.
Indeed, POPCAT traded at $0.3519 early this month but has soared to claim the $1 threshold over the weekend. Considering last month’s low of $0.2173, the Solana meme coin has advanced by 360% in 30 days.
Is a Massive Correction Underway for POPCAT?
Meanwhile, the intelligence platform noted that such sudden spikes in interest and value often precede corrections. This historical pattern suggests that while the current surge draws traders, better entry points may emerge post-correction.
POPCAT has drawn attention from mainstream traders after the Solana-based asset has surged +117% since July 11th. Historically, this level of sudden interest as a result of a price surge has a high chance of leading to a correction, where better entry points are likely. pic.twitter.com/Skpkn8Utu6
— Santiment (@santimentfeed) July 21, 2024
POPCAT Volume and Social Dominance Spike
POPCAT’s social dominance chart reveals a sharp increase, confirming heightened discussions and focus among traders. This surge in social interest often correlates with FOMO, driving more traders to buy in anticipation of further price increases.
Santiment stressed that historically, spikes in social dominance typically lead to corrections as the asset becomes overbought.
Notably, the trading volume for POPCAT has seen significant spikes, particularly in late February, mid-April, and early July 2024. These periods of high trading activity align with major price movements, as seen with the recent surge in early July.
The correlation between volume spikes and price increases suggests strong buying interest driving the current market trend. However, increased volume often precedes higher volatility, indicating the potential for a bearish phase.
What Technical Indicators Say
Analyzing POPCAT’s daily chart reveals critical insights into its current market position. The Bollinger Bands indicate high volatility, with the price nearing the upper band, suggesting an overbought condition.
The 20-period SMA acts as mid-line support, and the price is significantly above this level, reflecting strong upward momentum.
Furthermore, the Relative Strength Index (RSI), currently at 66.75, further supports these observations. It indicates strong momentum without being overbought, suggesting that while there is room for further price increases, a correction may still occur.
At press time, POPCAT trades at $0.9049, having lost 6% of its value in the last 24 hours.
