The Solana-based memecoin Popcat (POPCAT) has been making the headlines for the past week after becoming the first cat-themed token to reach a $1 billion market cap.
The token has surged over 230% in the past month, which propelled the token to a new all-time high (ATH). However, a crypto analyst has warned investors of a possible correction for the feline sensation.
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POPCAT Leads The Clowder
This month, Popcat has registered a remarkable performance. The token began climbing the chart on July 11, breaking above a $900 million market capitalization by July 16. That day, the Solana-based memecoin flipped Ethereum’s MOG and became the largest cat-themed token by market cap.
Popcat continued its ascending trajectory, reaching a $1 billion market cap on July 20 and becoming the first ever cat memecoin to achieve this milestone. The following day, the token reached its ATH of $0.9939, according to CoinGecko data.
Currently, the token is the eighth-largest memecoin by market cap, sitting above Cat in a dogs world (MEW) and MOG. MEW has also seen a remarkable performance in the past week, with a 98.2% surge in the last seven days.
During Q2, the cat-themed tokens saw massive growth and infiltrated the top 10 memecoin list. Moreover, a CoinGecko survey revealed the category became the 14th most popular crypto narrative in the second quarter.
Is A Correction Looming?
Following its recent performance, some crypto analysts and investors considered that “Popcat is looking good.” Team Lambo Charts shared on X that the memecoin had “another fresh breakout done” earlier today.
Per the post, the token broke out of the downtrend line after successfully retesting the $0.84 mark. If the cat-themed memecoin continues to hold above this price range, the analyst believes a retest of the $1 resistance level is possible. Based on this, he set an initial $1.08 target “for the overall 25% move short term.”
VikingXBT, another market watcher, also commented on the token. To him, Popcat’s performance following its ATH “makes sense on the lower timeframe.” The analyst pointed out that the token “hit the psychological target a lot of people had.”
He stated that the current retraces and retest of the old resistance are “molto buono.” Additionally, he suggested that investors embrace themselves “with a bit of patience” while the token resumes its climb.
Nonetheless, not all analyses are confident about the memecoin’s recent performance. On Monday, renowned analyst Altcoin Sherpa shared his thoughts on X. Per the analyst, the chart “looks decent still but would be concerned if this prints a lower high/shoulder.”
Sherpa thinks that if it happens, and Popcat starts to sell off, “all cat beta is going to die.” However, the analyst clarified he’s still bullish for now as he believes that cat-themed memecoins “will do pretty well and play catch up.”
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As of this writing, the largest cat-themed cryptocurrency registers a 12% and 27% increase in the daily and weekly timeframes.
Featured Image from Unsplash.com, Chart from TradingView.com