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POPCAT crypto has displayed notable resilience, bouncing back over 100% from recent lows, but facing significant whale sell-offs amid recovery.
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Despite experiencing a dramatic decline of 90% earlier, there is renewed optimism for POPCAT as it seeks to regain its former value.
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According to SpotOnChain, a whale capitalized on the recovery, realizing a profit of $7.32 million after offloading ten million POPCAT tokens.
POPCAT shows signs of recovery with a 100% bounce from lows, yet whale sell-offs raise concerns about sustained price gains. Will the momentum hold?
Will whale sell-off cap POPCAT recovery?
POPCAT’s recent price action is intriguing, as the memecoin has managed to recover to the $0.30 mark after a **90% decline**. This significant recovery has led to renewed interest from investors, with many hoping to see prices rise back to **$1**. However, the sell-off by large holders raises questions about the sustainability of this upward trend.
Source: POPCAT/USDT, TradingView
The daily analysis reveals that while POPCAT defended the crucial **$0.20** level, immediate resistance points at **$0.40** and **$0.66** could pose challenges for further gains. Despite the current momentum, the market sentiment remains cautious as the **Relative Strength Index (RSI)** trends towards neutral, indicating that a sustained recovery may be hard to achieve without strong buying pressure.
Technical Indicators: Key Levels to Watch
For technical traders, the current setup indicates that if POPCAT stumbles at the **$0.40** threshold, we could see a retracement to the **$0.30** level, which may present a buying opportunity for investors looking to capitalize on potential rebounds. Additionally, a sustained failure to breach this resistance could see trading volume stagnate, as reflected by the recent behavior of the **On-Balance Volume (OBV)** indicator.
Source: POPCAT/USDT, TradingView
On-chain signals rebound
In a contrasting move, the on-chain metrics for POPCAT have shown a rebound during February. The **Weighted Sentiment** has improved significantly from previous negative levels, indicating a more favorable market perception compared to December. This shift in sentiment suggests increased investor confidence in POPCAT’s future.
Source: Santiment
Moreover, there has been heightened engagement with the POPCAT memecoin observed through spikes in **Social Volume**, suggesting a rising interest that could translate into increased demand in the market. However, to establish a more robust price upward trajectory, the daily RSI needs to consistently breach the neutral zone.
Conclusion
In summation, while POPCAT has demonstrated a **remarkable recovery** from its recent lows, the impact of whale sell-offs presents significant hurdles for growth. As **on-chain metrics** indicate improved market sentiment and engagement, the potential for future price increases remains contingent upon overcoming immediate resistance levels and maintaining upward momentum. Investors should closely watch these developments to assess the viability of sustained growth opportunities.
