CAT shows a strong upward trend after nearly 50% rise in one day.
Volume indicators show steady buying pressure in recent weeks despite consolidation at the 0.00004 USD level.
Simon’s cat (CAT) recorded a strong increase on December 16. The value of CAT surged 48.6% in one day, and trading volume skyrocketed over 10 times. This indicates high enthusiasm in buying this Meme Coin breakout.
However, CAT has struggled to overcome the local resistance area at 0.000063 USD. Even though it reached a new all-time high of 0.000068 USD during the day, the bulls could not hold the previous peaks as support.
How deep will the adjustment of Simon’s cat cryptocurrency go?
Source: CAT/USDT on TradingView
The Simon’s cat cryptocurrency surpassed the three-month peak threshold in November, but then fell to 75% at the support level of 0.00004 USD. It has tested this level multiple times, forming a new oscillation range extending to local peaks at 0.000063 USD.
The daily closing session on Monday broke through the peaks of the oscillation range and opened up a strong bullish scenario for CAT in the coming days. The adjustment in the past 24 hours could see Simon’s cat cryptocurrency drop to support levels of 0.000055 USD and 0.000052 USD.
The daily RSI, which has been in a downtrend area, surged higher on Sunday indicating a shift in sentiment. OBV has been trending upward since late October, and this trend has not been interrupted. Steady buying pressure is likely to drive prices higher in the coming weeks.
The increase in Open Interest reflects a shift in sentiment
Source: Coinalyze
The strong surge in trading volume on December 16 was accompanied by a spike in Open Interest from 18 million USD to 54 million USD. The funding rate has also increased slightly, from 0.028 to 0.036.
However, this is not as high as earlier in December, and sentiment is no longer heavily biased. As the short-term adjustment towards the 0.000055 USD level occurs, subsequent increases may be predicted.
