Popcat, the popular Solana meme coin, continued rising this week as the mood among traders improved and as its futures open interest jumped.
Popcat (POPCAT) rose by over 13% on Sept. 12, reaching an intraday high of $0.6812, its highest level since Aug. 29. It has surged by over 152% from its last month’s low.
The token rebounded as data from the futures market showed that open interest was in a strong uptrend. It jumped to a high of $63 million, its highest level since July 27, and much higher than last month’s low of $17 million.
Its volume on exchanges is also rising. Data shows that the volume stood at over $139 million, its highest level since Aug. 24. This indicates strong demand for the coin.
A good example of this is a whale who swapped Dogwifhat (WIF) worth $800,00 to Popcat. He then swapped his Solana (SOL) for the token. Another trader initiated a dollar-cost averaging trade worth $4 million.
Meanwhile, Cryptonary, a crypto analysis firm, maintained its bullish view on Popcat and upgraded its price target to $40. With the coin trading at $0.6812, it means that it needs to rise by almost 5,800% from the current levels.
Historically, some meme coins have had similar parabolic moves in the past. Dogwifhat jumped by over 5,000% between its lowest and highest points this year. Popcat also surged by over 1,000% between its lowest point in April and its all-time high in July.
One of the popular bullish cases for Popcat is that its ownership is spread widely. According to CoinCarp, it has over 49,000 holders, with the top ten biggest holders accounting for just 15%, and the top 50 accounting for 22% of all tokens in circulation.
In contrast, Brett’s (BRETT) top ten wallets hold 71% of all tokens. Pepe’s (PEPE) top ten accounts hold 45% of all tokens. Therefore, manipulating Popcat by whales is harder than the highly concentrated Brett and Pepe.
Popcat has formed a risky pattern
Technically, there is a risk that Popcat could pull back in the near term before resuming its uptrend. On the 4-hour chart, it is forming a head and shoulders pattern, one of the most popular bearish signals. It is about to complete the right shoulder, meaning that it may experience a deep reversal in the near term.
