Solana meme coin POPCAT has attracted a lot of attention from mainstream traders after its astonishing price surge of 117% in the last two weeks.
The incredible achievement of the Solana-based meme coin was recently featured on the market intelligence site Santiment on X. The update noted POPCAT has more than doubled in value since July 11.
In fact, POPCAT was trading at $0.3519 at the start of the month, but it shot above $1 over the weekend. The Solana meme coin has gained 360% in just 30 days from last month’s low of $0.2173.
Is a massive revamp coming for POPCAT?
The intelligence platform pointed out that these abrupt spikes in price and interest often precede a correction. While traders are attracted to the current surge, this historical trend suggests that better entry points may appear after a pullback.
POPCAT Volume and Social Dominance Spike
The social dominance chart by POPCAT shows a significant increase, indicating that traders are talking more and paying more attention. FOMO is often correlated with this surge in social interest, which encourages more traders to make purchases in anticipation of a future price increase.
Highlighting historical patterns, Santiment emphasized that an increase in social dominance usually results in a correction as the asset becomes overbought.
POPCAT’s trading volume has seen notable surges, particularly in late February, mid-April, and early July 2024. As evidenced by the most recent surge in early July, these times of intense trading activity correspond to significant price fluctuations.
The relationship between the cost increment and the surge in volume demonstrates that the current showcase drift is being driven by significant buying interest. But high volume precedes high volatility, which indicates that a negative trend may be imminent.
Source: POPCAT chart on Santiment
Technical Indicators
Analyzing POPCAT’s daily chart offers important information about its current market position. The Bollinger Bands show strong volatility, with the price approaching the upper band, indicating an overbought position.
The 20-period SMA serves as midline support, and the price is much higher than this level, indicating strong upward momentum.
Source: TradingView
These findings are further supported by the Relative Strength Index (RSI), which is currently at 66.75. Strong momentum without being overbought suggests that a correction could still occur, even though more price growth is likely.
At the time of writing, POPCAT is trading at $0.9049, down 6% from the previous day’s price.
