POPCAT (POPCAT) Could Soar by 30% to Reach the $1.84 Level

POPCAT has formed an excellent risk-reward ratio of 1:4. Falling open interest and a long/short ratio below one indicate weak bearish sentiment

Solana-based meme coin POPCAT has formed a bullish technical setup on the daily chart, presenting a potential buying opportunity with an excellent risk-reward ratio.

Key Levels to Watch Out For

The technical analysis of POPCAT on the daily chart reveals a bullish outlook. Notably, the meme coin has been forming a bullish channel pattern since early October 2024. Throughout this period, the lower boundary of the channel has acted as a strong support level for POPCAT.

As evident from the chart, whenever the POPCAT price approaches this support level, it tends to experience buying pressure, leading to an upside rally. This time around, traders and investors are anticipating a similar upside move from the meme coin.

If POPCAT manages to hold itself above the lower boundary of the bullish channel pattern, there is a strong possibility that the meme coin could soar by 30% to reach the $1.84 level in the coming days.

Moreover, the current level presents a potential buying opportunity with a 1:4 risk-reward ratio, making it an attractive setup for both short-term traders and investors.

Mixed On-Chain Sentiment

While the technical outlook appears bullish, a closer examination of POPCAT's on-chain metrics reveals mixed sentiment among traders.

According to the on-chain analytics firm Coinglass, the Long/Short ratio for POPCAT is currently at 0.90, indicating a bearish sentiment among traders. This suggests that more traders are betting on a decrease in the meme coin's price.

Furthermore, POPCAT's open interest has dropped by 12% over the past 24 hours, reflecting the liquidation of traders' positions. This is evident in the decreasing bar chart, which shows the open interest changing over time. Notably, the rate of liquidation appears to be higher than the previous day.

Typically, a combination of falling open interest and a Long/Short ratio below one indicates weak bearish sentiment among traders, as new positions are not being built up. However, it's important to note that this metric can change rapidly, especially in volatile markets.

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