PopCat, a Solana-based meme coin, gained by over 30% within the last 24 hours. This performance was spurred by the crypto market wide bullish momentum following the Federal Reserve Funds rate cut by 50 basis points. Other meme coins such as MEW, Ponker, BOME and Neiro rallied during the same period. For example, the BOME price rose by 10.6% while Blub surged by 39.6%. But the rally was not only limited to meme coins. Many altcoins and bitcoin had significant gains within the previous 24-hour period.
Coming back to PopCat, its explosive rally has positioned it as the second greatest gainers among the top 100 cryptocurrencies within the cited period. More significantly, the token had been performing remarkably within the previous 30 days. For example, its price has risen by 52.7% within the past two weeks and by 77.4% during the previous month. The following graph shows PopCat’s price action during the period.
PopCat Price Action – Coingecko
Although the token has been performing well for the past 30 days its price dropped within the first week of September. By the 9th it had regained its upward trend. At present, PopCat is just 10.6% lower than its all-time high of $0.9939, reached on 21 July. This simply shows that PopCat has been one of the best performing cryptocurrencies during the year.
It is important to note that PopCat has been trending for the past 11 days. Although it had a short consolidation phase on 12 September the uptrend is continuing. At the time of writing, PopCat is trading at $0.89 Popcat/USDT at Gate.io. Recently, a large momentum candle formed above the $0.68 resistance level as the following weekly price chart shows.
PopCat Price Action – Coingecko
Looking at the current state, PopCat may get in another consolidation zone before continuing with its uptrend. However, it may also have a price correction. Its next strong resistance level is at $1. Currently, the asset is within a rising channel with a clearly defined bottom and top. Incidentally, the token has been in this channel for the past one month. If PopCat fails to break above the boundary of this channel its price may fall by about 15% to slide towards $0.68.
Apart from the market wide bullish uptick caused by the Fed interest rates cut, whale activity might have contributed to the recent PopCat price rally. For example, a whale acquired $4.13 million worth of POPCAT on 11 and 12 September. From that trade the whale generated a profit of about $1.2 million within 10 days.
PopCat Whale Accumulation – x.com/Lookonchain
Such a large acquisition of the PopCat token might have contributed to its current rally. However, the whale has unrealized profit. Thus, if there is a sign of slowing down the whale may sell his/her holding. PopCat, with a market capitalization of over $855 million, was recently listed on Binance perpetual contracts which has boosted its trading volume.
Understanding the Popcat Meme Coin
Let’s briefly look at the origin and tokenomics of Popcat. The Popcat meme coin was derived from a meme coin of two cats that was created in 2020. After the meme coin went viral someone turned it into a meme coin. It is essential to realize that it was not the original creator of the meme coin who created PopCat meme coin. The fact that the meme coin has become successful shows the power of community engagement and speculative excitement. As we know, the values of meme coins are driven by community engagement and perception rather than by their fundamentals or utility.
Among the factors that influence the performance of meme coins are its total supply and allocation. If a token has high demand, a low supply may lead to a higher price than otherwise. It’s worth noting that Popcat has a total supply of 979,974,293. On the other hand, 93.1% of the token is allocated to its liquidity pool while the team has kept 6.9% for future liquidity enhancement and exchange listings. The team wants to ensure that there is sufficient liquidity for traders and other investors. However, such a team strategy does not always guarantee the success of the digital asset. Therefore, like in any other cases, investors should analyze the existing technical indication of the asset.
Similar to most meme coins, Popcat does not have intrinsic utility or use cases. Its value solely depends on market speculation and investor sentiment. Therefore, its price is highly volatile. In such cases the investors should adopt reliable risk management tactics and trading strategies. For example, they should use proper trade size, stop loss and take profit orders.
While meme coins like Popcat have high investment risks they may also lead to large gains within a short period. Therefore, investors should adopt a balanced view when investing in meme coins. At present Popcat/USDT is listed on various cryptocurrency exchanges that include Gate.io.
Disclaimer
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