POPCAT requires a 30% Rally, 1:4 risk-reward ratio.
In the midst of this price correction, POPCAT, the popular Solana-based meme coin, looks very promising and has created a buying opportunity with an excellent risk-reward ratio. A possible reason for this bullish attitude is the daily chart pattern and high price action of MemCoin.
POPCAT technical analysis and upcoming levels
According to expert technical analysis, POPCAT looks bullish and is currently heading towards the lower border of the bullish channel pattern which has been a strong support for MemCoin since early October 2024.
Based on recent price action, whenever POPCAT price approaches this support level, it will experience buying pressure and a reversal rally. At this time, traders and investors are waiting for the same rally.
If POPCAT holds itself above the lower boundary of the bullish channel pattern, there is a good chance that MemCoin could rise by 30% to reach the $1.84 level in the coming days. Additionally, the current level presents a buying opportunity with a 1:4 risk-reward ratio.
Bullish On-Chain Indicators
Despite this positive outlook, POPCAT's metrics on the chain suggest mixed sentiment. According to on-chain analytics firm Coinglass, the long/short ratio is currently at 0.90, indicating bearish sentiment among traders. Additionally, POPCAT's open interest has decreased by 12% over the past 24 hours, reflecting the flow of traders' positions, which is relatively higher than the previous day.
Falling open interest and a long/short ratio below one indicate weak bearish sentiment among traders, as new positions are not being built.
Current price momentum
As of now, POPCAT is trading around $1.44, down more than 11% in the last 24 hours. During the same period, the trading volume decreased by 30 percent, indicating that the participation of traders and investors was low during the price reduction.
