Popcat [POPCAT] has fallen 17.8% from its all-time high of $1,485. At press time, it is trading at $1.21, as Bitcoin [BTC] bulls struggle to push the price above the $64,000 mark.
The volatility on October 7 created bearish pressure in the cryptocurrency market. POPCAT was also affected by this turmoil and went into a slight decline. Despite the price drop, the price structure and trend still maintained a strong positive trend.
The fair value gap could drag prices lower
The sharp price increase on October 4 left a reasonable price gap on the daily chart. This area extends from $1.07 to $1.13.
Over the past 24 hours, the meme coin has found support at $1.15, but further declines are still possible.
BTC also has a short-term bearish outlook, making Popcat's drop to $1 more likely. On the daily chart, price action and technical indicators remain firmly in a positive trend.
The RSI continues to move above the neutral level of 50, indicating increasing momentum. OBV has been flat over the past week, and trading volume remains low.
This is a bit of a problem for the optimists, as strong momentum is not followed by significant buying.
Chance of POPCAT range forming above $1
Since mid-September, Social Volume has increased and is trending upwards, while Weighted Sentiment is also positive.
This could help build excitement for Popcat and could see the price move higher due to positive expectations.
The drop in trading volumes in October was a blow to positive expectations, suggesting the market may need time before expanding north again.
TinTucBitcoin found a liquidation heat map that provides some clues to this scenario.
The $1.11 and $1.30 areas have a cluster of liquidation levels around them that could attract price. Once this level is cleared, the meme coin price could see a reversal from these liquidity pools.
