This Solana Memecoin Climbs 36%, On The Verge Of Reaching $1 And Record Highs

The excitement surrounding memecoins is making a notable comeback as Solana-based tokens outperform larger cryptocurrencies, particularly following the recent announcement from the Federal Reserve regarding interest rate cuts. Among the standout performers is Popcat (POPCAT), which has experienced a...

Sep 20, 2024 - 21:05

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This Solana Memecoin Climbs 36%, On The Verge Of Reaching $1 And Record Highs

The excitement surrounding memecoins is making a notable comeback as Solana-based tokens outperform larger cryptocurrencies, particularly following the recent announcement from the Federal Reserve regarding interest rate cuts.

Among the standout performers is Popcat (POPCAT), which has experienced a remarkable 36% spike in just 24 hours, bringing the token close to its all-time high achieved in July of this year, underscoring the renewed enthusiasm for memecoins amidst changing economic conditions.

Popcat Records Nearly 100% Gain In A Month

On Wednesday, NewsBTC reported that the Federal Reserve announced its first rate cut in four years, reducing the federal funds rate by 0.50 percentage points. This adjustment marks a significant shift since the onset of the COVID-19 pandemic, lowering the target range to 4.75%–5%, down from 5.25%–5.5%.

These rates were the highest seen since 2001, and the decision is seen as a bullish signal for the broader market, suggesting potential price increases shortly, even as volatility is expected.

In response to this news, Solana saw nearly a 10% surge in the last 24 hours, edging closer to the $150 mark after successfully reclaiming key support levels. This momentum has fostered renewed confidence in tokens built on the Solana network, exemplified by Popcat’s performance.

Top 5 Solana memecoins and their performances. Source: CoinGecko

Currently trading at $0.918, Popcat is now just 7% shy of its all-time high of $0.993 reached two months ago. The latest increase coincides with a staggering 236% rise in trading volume, nearing the $200 million mark within just 48 hours, according to CoinGecko data.

Looking at longer time frames, Popcat has demonstrated significant growth, recording a 44% increase over the past week and a 62% rise over the last two weeks.

This translates to nearly a 100% gain in the past month, particularly striking compared to larger cryptocurrencies that have faced losses following significant market downturns on August 5 and September 6.

Key Levels To Watch For The Solana-Based POPCAT

Despite the uptrend recorded, POPCAT encountered challenges in maintaining its momentum earlier today. The token reached a daily high of $0.936 but struggled to consolidate above a critical resistance level at $0.939 on its POPCAT/USDT daily chart.

This resistance has emerged as one of the last significant hurdles for Popcat before it can approach its all-time highs recorded in July. Should the token break through this barrier, the next resistance level is $0.971.

Not surpassing both levels could lead to a brief phase of consolidation, which may be necessary for the token to gain the strength required to push further upward. However, if the current uptrend loses momentum, the inability to break these resistance levels could hinder Popcat’s progress.

On the downside, bullish investors should closely monitor the $0.834 level, as it serves as the nearest support floor for the memecoin. It could indicate a potential correction if the price falls below this support.

In such a scenario, the next support level on the daily chart is significantly lower at $0.72. If the price reaches this level, it would represent a considerable decline of approximately 21% from its current trading price of $0.918.