POPCAT Hits Key Long-Term Support Following Major Correction: What's Ahead?

Date: Thu, Dec 19, 2024, 06:36 PM GMT

The cryptocurrency market is experiencing a sharp pullback, with Bitcoin (BTC) leading the downturn. BTC dropped 5% today, falling to $98,000 after recently hitting an all-time high of $108,000. This dip follows heightened market uncertainty stemming from the latest Federal Reserve meeting.

This widespread bearish sentiment has impacted altcoins and memecoins, including Solana-based Popcat (POPCAT). POPCAT has suffered a 22% decline in the past 24 hours, bringing its monthly loss to near 60%.

Source: Coinmarketcap

Hits Long-Term Support

Following the sharp 66% correction that dragged POPCAT down from its all-time high of $2.08 to today’s low of $0.70, the memecoin has now retraced to a key long-term ascending support trendline around the $0.70 mark.

This trendline has historically acted as a crucial support during previous corrections, preventing deeper declines and serving as a springboard for price reversals. POPCAT has shown a repeated pattern of experiencing significant corrections of over 50% after reaching new all-time highs, followed by rebounds leading to new highs.

Currently trading at $0.74, POPCAT is showing early signs of stabilization at this critical level, raising questions about whether this support will once again serve as the foundation for a recovery.

What’s Ahead?

As of now, POPCAT is showing signs of resilience, trading at $0.74, slightly above the long-term support level.

• If the support holds, a recovery rally could follow, potentially leading to new highs based on past trends.
• However, failure to hold this level may result in further downside, with the next support target near $0.60.

With the market deeply oversold, as suggested by the RSI at 24.22, there is a strong possibility of a rebound if buying interest returns at these levels.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.

Also Read: SEI and SUSHI Price Action Highlights Reversal Potential: What to Expect Next – Analyst Insights