POPCAT has been experiencing sideways movement in recent weeks, raising concerns among investors. As the memecoin attempts to regain its footing, its difficulty in maintaining upward momentum could lead to prolonged losses.
Currently, the cryptocurrency is approaching critical support levels, signaling possible corrections ahead.
POPCAT needs support
POPCAT network growth, a metric that tracks the rate of new addresses joining the network, is at its lowest point in two months. This decline suggests that the asset is losing traction among new investors as fewer participants are joining the ecosystem. The lack of renewed interest highlights decreasing incentives for adoption, weakening its appeal in the market.
This stagnation in activity is a warning sign for long-term growth. A thriving network typically relies on constant user engagement, and POPCAT’s waning momentum could discourage new investment. Without renewed interest, the memecoin may struggle to recover and maintain its position in the market.
Growth of the POPCAT Network. Source: Santiment
Despite the Relative Strength Index (RSI) remaining in the bullish zone, POPCAT’s momentum suggests bearish trends. The RSI is trending downward, signaling weakening buying pressure that could exacerbate corrections. While the indicator suggests bullish sentiment, broader market forces appear to be turning against the memecoin.
Such a bearish macro trend usually indicates future difficulties in price action. If these signals persist, they could push POPCAT further into a downtrend, limiting any potential for recovery in the short term. Investors should remain cautious with these indicators as they may portend prolonged volatility.
RSI yes POPCAT. Fonts: TradingView
Price Prediction: Correction Ahead?
POPCAT price has dropped significantly from its all-time high (ATH) of $2.10, currently trading at $1.65. This decline has caused the memecoin to fall below the critical support level of $1.74, a key marker for maintaining upward momentum.
If bearish pressures continue, POPCAT could drop to $1.49, which serves as its next critical support. A break of this level could lead to a further decline towards $1.21, erasing more of its recent gains and moving the memecoin away from a new ATH.
POPCAT Price Analysis. Source: TradingView
However, if POPCAT reclaims the $1.74 support level, it could signal a bullish reversal. Such a rebound could propel the price back to its all-time high of $2.10, potentially invalidating the bearish outlook and triggering a new rally.
The article POPCAT activity hits low and correction risk increases was first seen on BeInCrypto Brasil.
