The price of Catizen ($CATI) coin has dropped 14% over the last 24 hours, currently trading at $0.7596. This downturn occurred alongside a 20% decrease in trading volume, which fell to $318 million. CATI’s performance, much like other meme coins such as DOGS, has struggled to maintain positive momentum post-launch.
Bearish Momentum with Signs of Recovery?
Since launching on September 20, Catizen coin has followed a consistent downtrend, trading within a falling wedge pattern. The token’s price has moved from a high of $1.2 to its current support level of $0.73.
Catizen Price Chart Analysis Source: GeckoTerminal.com
CATI is also trading below its 50-day Simple Moving Average (SMA) of $0.8567, further showing the bearish sentiment.
Additionally, a descending triangle pattern is forming on CATI’s price chart. It is a bearish indicator where the price is compressed between a flat support line around $0.73 and a declining resistance line.
Decending triangle formed in CATI token price chart. Source: TradingView
A breakdown below the $0.73 level could trigger a deeper drop, with $0.65 acting as a new support floor. However, if the price breaks above the descending resistance line, this could invalidate the bearish pattern and push the price higher.
RSI Signals a Potential Bounce
Another key indicator to watch is the Relative Strength Index (RSI), which currently sits at 42.02. This places CATI in neutral territory, having bounced back from oversold levels. A reading below 30 would indicate that the asset is oversold, but current RSI suggests that buying pressure is starting to increase. This could signal a potential price reversal if momentum continues to build.
While the RSI is not yet in overbought territory (typically above 70), its upward movement could attract more bullish investors if it continues to rise. This could increase the likelihood of a price breakout.
Can CATI Price Stage a Comeback?
Despite the prevailing bearish signals, there is still potential for CATI to bounce back. The oversold RSI suggests that the token is undervalued, and if bullish investors take this as a buying opportunity, Catizen coin could rally toward previous highs. The key level to watch is the resistance zone between $0.77 and $0.80. Breaking above this number would invalidate the current descending triangle pattern and could trigger a more sustained upward move toward $1.2.
Notably, the risk of a further drop remains there, with $0.73 being a crucial support level. If it fails, Catizen price could drop to $0.65, and continued bearish pressure could see the token face an even steeper decline.
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