The Solana (SOL) memecoin ecosystem is regaining traction with investors as Bitcoin (BTC) leads the overall market recovery, approaching its previous record high of $73,700 set in March. This renewed interest is reflected in the performance of Popcat (POPCAT), one of the outstanding and best-performing tokens in the Solana memecoin space over the past month.
Wintermute Fuels The POPCAT Bullish Trend
POPCAT has emerged as a significant winner in the Solana chain in the past week, experiencing a 21% surge. Following a continued uptrend, the token recorded a 13% increase in just 24 hours, reaching a new all-time high of $1.75 on Tuesday.
According to data from Nansen, the driving force behind this bullish trend has been a notable increase in buying pressure, largely attributed to market-making trading firm Wintermute, which has played a pivotal role in facilitating buying transactions within the digital asset.
However, shortly after hitting its record peak, POPCAT retraced to approximately $1.70, attributed to increased profit-taking by investors, as many sought to capitalize on the recent gains.
Nansen’s data indicates a pattern of transfers to decentralized exchanges (DEXs) for selling purposes, signaling a typical market behavior following a significant price surge and the achievement of a new record price.
One of the key players in these transactions is the crypto exchange Bybit, which has been transferring POPCAT tokens in batches to the US-based exchange Kraken over the past few days. Despite these transfers, Bybit still retains around 63,602 POPCAT coins, valued at approximately $109 million.
To avoid a sharp correction and maintain the upward momentum, it will be crucial for the POPCAT bulls to hold key support levels in the coming days, and in particular, to hold and consolidate above the $1.70 level.
Key Levels To Watch
Despite the enthusiasm surrounding the POPCAT token, the most significant support levels are well below current trading prices, which could lead to significant retracement.
Looking at the POPCAT/USDT daily chart, the first support is located at the $1.55 zone, which, if lost, could lead to a further pullback down to the $1.48 support. This could jeopardize most of the token’s gains over the last week, as the loss of these levels could lead to a retest of its next support at $1.37.
However, it remains to be seen whether the buying pressure seen over the past week can overcome the current profit-taking activity by investors in the token, as a consolidation above $1.70 in the next 72 hours can lead to a significant bullish weekly close.
Featured image from DALL-E, chart from TradingView.com