Popcat price rose for the second consecutive day as the sentiment in the crypto industry improved.
The Popcat (POPCAT) token rose to an intraday high of $0.90, up by 20% from its lowest point this week. It is one of the best-performing cryptocurrencies in the market this year as it jumped by over 32,000% from its lowest point in January.
Bitcoin and altcoin rally
Popcat’s rebound happened as Bitcoin (BTC) and other altcoins rose and as the fear and greed index moved to 60. Ethereum (ETH) was up by 2% while tokens like SATS, Aave, Monero (XMR), and Bittensor soared by over 10%.
The other reason for the rebound is that traders are buying the dip after the Popcat token moved into a bear market, falling by over 25% from its highest point this year.
In most cases, cryptocurrencies and other assets bounce back briefly even when they are in a deep bear market. Some of this rebound is known as “a dead cat bounce,” where it rises briefly and resumes the downward trend.
Popcat’s rise coincided with a big increase in its open interest in the futures market. According to CoinGlass, the interest rose to over $61 million on Friday from this week’s low of $52 million.
The Popcat token also rose after an analyst who predicted its rally in January made the case that meme coins have a utility. In an X post, Cryptonary noted that these tokens had four main utilities, including entertainment, community, culture, meaning, and a trading vehicle.
— Cryptonary (@cryptonary) July 26, 2024Despite what most people believe, memecoins do have utility
They satisfy people’s desires — for community, enjoyment, and belonging — better than most tech projects pic.twitter.com/9QwRrZqsAF
The lack of any clear utility is one reason why many investors avoid meme coins and instead focus on other cryptocurrencies like Bitcoin and Ethereum.
Despite this, meme coins like Popcat, Pepe, and Floki have become leading players in the crypto industry with a combined market cap of over $54 billion. Some of them have even outperformed other large coins like Bitcoin and Ripple (XRP).
Popcat price has solid technicals
Technically, Popcat price rose after it formed a morning star candlestick pattern on Thursday. It is one of the most bullish patterns in the market and is characterized by a small body and equal upper and lower shadows.
Additionally, Popcat token has remained above the 25-day and 50-day moving averages, meaning that it could continue rising. If this happens, it could retest the crucial resistance point at $1, 13% above the current level.