Key Takeaways
Popcat surged 13.89% after successfully defending $0.30 support to reach a local high of $0.346. Buyers returned to the market after 7 days of sellers’ dominance.
After dipping to $0.29, Popcat [POPCAT] successfully defended $0.3 support and surged 13.89% to $0.346, then retraced to $0.344 at press time.
Over the same period, the memecoin’s Trading Volume jumped 20% reaching $54 million, while market cap hiked 13% to $337 million.
Is this the start of something bigger or a mere technical bounce?
Buyers bounce back in the spot market
After seven days of sellers’ dominance, buyers returned to the market and displaced them. According to Coinalyze, Popcat saw a positive Buy Sell Delta for the first time in seven days.
At the time of writing, Popcat saw 4.58 million Buy Volume compared to 3.97 million in Sell Volume. As a result, the memecoin recorded a positive market Delta of 607K, a clear sign of aggressive accumulation.
Source: Coinalyze
The same pattern was observed on exchanges as Netflow has held within negative territory for five consecutive days.
According to CoinGlass, Fartcoin Spot Netflow declined -$100k as of writing. Usually, a negative netflow suggests that exchanges recorded more outflows than inflows.
Source: CoinGlass
Historically, such a shift in power dynamics on exchanges has resulted in upward pressure on an asset, leading to higher prices.
Derivatives are bullish, too
As expected, as the market rebounded, investors flocked into the derivatives market to position themselves, awaiting the next move.
According to CoinGlass, Popcat Open Interest (OI) jumped 9.14% to $151.9 million while Volume surged 2.08% to $321 million, at press time.
Source: Coinglass
Typically, when OI and Volume rise, it indicates increased capital inflow and participation in the futures market.
Amid this increased activity, the Futures Long Short ratio flipped one to hit 1.0113 as of this writing.
When this metric exceeds 1, it indicates that participants in the futures market are predominantly taking long positions. Longs accounted for 68% while shorts accounted for 31% of the total futures accounts.
Source: CoinGlass
Often, when there are more long positions, it suggests that investors are actively betting on prices to rise, a clear bullish signal.
Can Popcat bulls hold on?
According to AMBCrypto’s analysis, Popcat rebounded as buyers returned to the market to accumulate it.
For that reason, the memecoin’s Relative Strength Index surged to 51, edging into bullish territory. At the same time, its Chaikin Money Flow rose from 0.12 to 0.19, further confirming the buyers’ presence.
Source: TradingView
Often, when these indicators are in such a manner, they signal rising buyer dominance in the market.
Having said that, if buyers exhibit the same behaviour as witnessed in the past day, the uptrend will hold, Fartcoin will reclaim $0.36 and target $0.4 resistance.
Conversely, if this attempt fails and sellers retake the market, Fartcoin will breach $0.3 support and dip to $0.285.
