POPCAT has recently broken through the downward channel and may be brewing a significant price increase
Despite the support from giants like Bybit, Binance, and Hyperliquid, spot traders in the market will still play a key role
POPCAT has risen 37% in the past 24 hours, thanks to the upward momentum of the past week. As a result, investors who purchased the asset in the past month are currently enjoying a 41% return rate.
Although market sentiment remains predominantly bullish, especially with strong whale interest and bullish technical setups, AMBCrypto has identified some factors that may hinder the potential rise of the asset.
Bullish breakout edge
POPCAT has displayed a price pattern that suggests a potential rise, forming a descending price channel. This pattern consists of parallel support and resistance lines.
Based on this, if the momentum driving the POPCAT trend continues and the asset successfully breaks through the resistance level, the price could reach $0.9822. This would represent a 370% price increase.
If a 3.7x increase occurs, the price is likely to pull back all the way rather than surge in one go. However, if the overall bullish market sentiment persists, POPCAT could ultimately break this level, trading at a peak price of $2.08.
Whales are chasing the rebound
Analysis of Coinglass's long-short ratio and market open contracts shows that whales have been driving the price significantly higher.
Firstly, the overall market sentiment remains bullish, with market buy volume exceeding sell volume. The long-short ratio has reached 1.0513, which fully supports this.
When this ratio exceeds 1, it indicates that the market is in a bullish phase. Conversely, below 1 means that bears or sellers are dominant, leaving more room for future declines.
Further analysis indicates that most buy contracts in the derivatives market are driven by whales or top traders holding large positions in the asset.
As of the writing of this article, giants like Bybit, Binance, and Hyperliquid dominate the market's open contracts. The total position of this group of traders is $80.7 million, while the total market open contracts amount to $127.89 million.
Due to the overall bullish market — particularly with buying volume dominating — this means that the long contracts opened by these whales outnumber the short contracts.
In fact, traders who shorted these whales have suffered significant market losses due to forced liquidations of their positions. In the past 24 hours, short traders lost $1.24 million due to the adverse price movements against them. This large-scale market liquidation highlights the strength of the bulls.
Profit-taking may slow the upward momentum
However, it is worth noting that this bullish sentiment is not consistent with spot traders in the market. As of the time of writing, the sell-off activities among spot traders are significant — according to net flow calculations from exchanges, the sell-off amount is approximately $850,000.
Source: Coinglass
When a large number of assets are sold off in a bull market, it indicates that long-term traders are likely realizing profits. Especially when they transfer POPCAT from private wallets to exchanges for sale.
If this trend continues among long-term spot traders, it could hinder POPCAT from breaking through the upper resistance level on the chart. As expected, this would slow down the bullish outlook.#币安LaunchpoolWCT
