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POPCAT Holds Key Support: Could This Breakout Break Its Downtrend?

POPCAT Holds Key Support: Could This Breakout Break Its Downtrend?

CoinsProbeCoinsProbe2025/01/23 00:00
By:Nilesh Hembade

Date: Wed, Jan 22, 2025, 06:50 PM GMT

In today’s cryptocurrency market, we are witnessing a notable recovery in the price of Solana-based memecoin Popcat (POPCAT). Over the last 24 hours, POPCAT has jumped by over 10%, marking a hopeful turn after its recent struggles. The token has experienced significant declines, dropping 24% in the last 30 days and a massive 60% in the past 60 days, reflecting a persistent downtrend.

POPCAT Holds Key Support: Could This Breakout Break Its Downtrend? image 0 Source: Coinmarketcap

However, a rebound from key support levels hints at the potential for a breakout, which could finally reverse the ongoing downtrend.

Technical Outlook

POPCAT previously enjoyed an impressive rally between mid-August to mid-November 2024, where it skyrocketed by over 400%, reaching an all-time high of $2.08. However, this meteoric rise was followed by a substantial correction, as the token entered a falling wedge pattern—a typical bearish consolidation phase.

POPCAT Holds Key Support: Could This Breakout Break Its Downtrend? image 1 POPCAT 1D Chart/Coinsprobe (Source: Tradingview)

This corrective phase dragged the price to a critical bottom support level of $0.39, marking a huge 81% correction. Despite this, the memecoin managed to hold this crucial level, and today, it has made a strong bounce upward, climbing to $0.58, bringing it closer to the wedge’s upper resistance line.

If POPCAT successfully breaks out of the falling wedge resistance, it could target key levels that signal further recovery. The first major hurdle is the intermediate resistance at $0.75, which represents a potential 27% gain from its current price.

Beyond this level, breaking through $0.75 could confirm a shift to positive momentum, potentially paving the way for a sustained rally and further price appreciation.

What’s Ahead?

POPCAT is at a critical juncture. Breaking out of the wedge pattern could indicate the start of a new bullish phase, providing opportunities for further upward movement. Traders and investors will closely monitor the price action around $0.75, as clearing this resistance could confirm a reversal of the long-standing downtrend.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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