Popcat (POPT), a meme coin built on the Solana blockchain and inspired by the viral meme, has surged 33% over the past 24 hours

This memecoin recently broke free from a downward trend, igniting a chain reaction of buying activity.

Popcat, a meme coin developed on the Solana blockchain and motivated by the viral meme, has risen 33% in the past 24 hours, sparking curiosity among crypto enthusiasts.

This memecoin recently broke free from a downward trend, setting off a chain reaction of buying activity.

Why is the POPCAT price rising?

It is crucial to note that, in contrast to stablecoins or utility tokens, meme coins like Popcat are known for their volatility, which is frequently fueled by community hype and speculative trading.

In the case of POPCAT, the dramatic price increase can be attributed to a combination of technical breakthroughs and shifting market dynamics that are specific to this playful token.

For several weeks, Popcat’s price had been encountering resistance from a descending trendline, a technical barrier that indicates persistent selling pressure.

Nevertheless, over the past few days, trading volume surged as the price pushed against this resistance, indicating a shift in trader sentiment.

When it finally broke through, technical analysts celebrated the breakout, seeing it as a bullish signal that attracted more buyers.

Furthermore, substantial short positions amplified the surge due to a classic market phenomenon.

Traders who were betting on Popcat’s decline were caught off guard by the breakout, compelling them to buy back tokens to cover their losses amid massive liquidations.

This short squeeze created a feedback loop of demand, driving the price even higher within a few hours.

Similar dynamics are frequently observed in the meme coin domain, where rapid price swings can punish overconfident short sellers.

It is also noteworthy that whale activity might have played a role, with large investors purchasing Popcat tokens in bulk.

In a market characterized by relatively low liquidity, these large buys can quickly increase prices, especially when timed with a technical rally.

There is historical precedent for this—last August, a whale’s purchase of 10 million tokens had a notable impact on Popcat’s price. A similar move, although not yet confirmed, could result in an even greater price surge.

Speculation about a Binance listing has also contributed to the token’s gains, with rumors circulating about Popcat being included in the next batch of the exchange’s Vote to List Campaign.

Even without official confirmation, such rumors can quickly generate interest and drive up the token’s price as traders anticipate broader exposure and credibility.

Finally, the broader crypto market’s mood might have influenced the meme coin, with meme coins sometimes following Bitcoin’s lead during bullish phases.

The crypto market, and Bitcoin (BTC) in particular, has shown signs of recovery following the suspension of US tariffs for 90 days.

What’s next for Popcat?

After plummeting from a $2 billion market cap to $200 million, Popcat was due for a rebound, and the current jump suggests a trend reversal.

Social media chatter indicates optimism, with analysts setting their sights on the next resistance at $0.2342.

If the meme coin manages to clear $0.2342, there are speculations that the token could escalate towards the next resistance at $0.3692, which, if breached, could pave the way for a rally to $0.9.

However, investors are reminded that meme coin predictions are notoriously difficult to make, and a failure to maintain the current support could lead to a continuation of the recent bear trend, potentially dropping to as low as $0.1634.

News data source: kdj.com

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