As a seasoned crypto investor with a knack for spotting undervalued gems, I find myself intrigued by the recent surge of Solana-based memecoins, particularly Popcat (POPCAT). Having witnessed the meteoric rise and fall of Dogecoin earlier this year, I’ve learned to keep a keen eye on such trends.
There’s a significant resurgence of enthusiasm for memecoins, as Solana-backed tokens have been outperforming major cryptocurrencies. This surge seems to be particularly fueled by the latest statement from the Federal Reserve about potential interest rate reductions.
One of the coins performing exceptionally well is Popcat (POPCAT), which saw a significant surge of 36% over the past day. This increase has brought the token very near to its peak value it reached in July this year, signaling a renewed interest in memecoins as economic circumstances shift.
Popcat Records Nearly 100% Gain In A Month
On Wednesday, it was reported by NewsBTC that the Federal Reserve made its first interest rate reduction in four years, decreasing the federal funds rate by 0.50 percentage points. This change represents a notable transition since the emergence of COVID-19, lowering the target range to 4.75%–5%, which is now lower than the previous range of 5.25%–5.5%.
Since 2001, these rates have reached their peak, and this move is interpreted as an optimistic indicator for the overall market, potentially implying imminent price hikes, despite the anticipation of market turbulence ahead.
Following this news announcement, Solana experienced a significant boost of almost 10% over the past day, moving closer to the $150 threshold after regaining essential support points. This upward trend has sparked renewed trust in tokens developed on the Solana platform, as demonstrated by Popcat’s impressive performance.
At the moment, Popcat’s price stands at $0.918, which is only 7% below its record high of $0.993 set two months ago. This recent surge in price comes alongside a massive 236% jump in trading volume, bringing it close to the $200 million mark within merely 48 hours, as suggested by CoinGecko’s data.
Over an extended period, Popcat has shown remarkable expansion. In just the past week, it increased by 44%, while over the last fortnight, it experienced a 62% surge.
In the last month, this has almost doubled (a near 100% increase), which stands out significantly against other major cryptocurrencies that suffered losses after the market drops on August 5th and September 6th.
Key Levels To Watch For The Solana-Based POPCAT
Even though POPCAT experienced an upward trend, it faced difficulties in sustaining its progress earlier today. The token peaked at $0.936 during the day but found it hard to hold above a significant barrier at $0.939 on its daily POPCAT/USDT chart.
One potential way to rephrase the given text could be: “One major obstacle that Popcat needs to overcome before reaching its previous peak levels from July is this resistance. If it manages to surpass this hurdle, the next level of resistance will be at $0.971.
Failing to pass through both stages might prompt a temporary period of stabilization, which could be essential for the token to accumulate the power needed to move higher. Yet, if the ongoing upward trend weakens, not being able to breach these resistance levels may impede Popcat’s advancement.
For bullish investors, it’s crucial to keep a close eye on the $0.834 mark, which functions as the closest point of stability or “support” for the memecoin. If the price dips below this level, it might signal a possible correction or adjustment in the market trend.
Under these circumstances, the potential bottom line in the daily chart lies substantially lower around $0.72. Should the price drop to this point, it would signify a sizable decrease of nearly 21% from its present value of $0.918.
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2024-09-20 07:16