Bullish signal for POPCAT, Eyes on 22% rally

• POPCAT’s on-chain metrics and technical analysis hint that bulls are dominating the asset.
• Its Open Interest increased by 3.9% over the last 24 hours, indicating growing interest among traders.

Popular Solana [SOL]-based meme coin Popcat [POPCAT] is making waves in the cryptocurrency landscape with its impressive performance.

However, in the past few days, it has been struggling to gain momentum, experiencing a price correction alongside major cryptocurrencies like Bitcoin [BTC] and Ethereum [ETH].

POPCAT looks bullish 

POPCAT appeared bullish at press time, as it had formed a bullish double-bottom price action pattern on a daily time frame.

After a price surge of over 35% in just three days, POPCAT has returned to its original range, where it has experienced a notable price surge and is on its way to forming a bullish price action pattern. 

Source: TradingView

Based on the historical price momentum, if POPCAT maintains above the $1.1735 level, there is a strong possibility it could soar by 22% to reach the $1.5 level in the coming days.

On the other hand, if it fails to hold this level and closes a daily candle below the $1.1735 level, we may witness a significant price decline.

POPCAT’s bullish outlook is further supported by on-chain analytics firm Coinglass. Notably, its Open Interest increased by 3.9% over the last 24 hours, indicating traders’ growing interest in the memecoin. 

Major liquidation levels 

As of press time, the major liquidation levels for POPCAT were near $1.168 on the lower side and $1.259 on the upper side, with traders over-leveraged at these levels, according to the Coinglass data.

Source: Coinglass

If the recent market sentiment remains unchanged and POPCAT’s price soars to the $1.259 level, nearly $2.56 million worth of short positions will be liquidated.

Read Popcat’s [POPCAT] Price Prediction 2024–2025

Conversely, if the sentiment shifts and the price drops to the $1.168 level, over $4.01 million worth of long positions will be liquidated.

Combining these on-chain metrics with technical analysis, it appears that bulls are currently dominating the asset and may trigger the liquidation of short positions, leading to a significant upside rally in the coming days.