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Our analysis of the situation
The craze for memecoins is reigniting as Solana-based tokens outshine the larger cryptocurrencies, fueled by the recent Federal Reserve announcement on interest rate cuts.
Elevated Enthusiasm for Memecoins
Popcat (POPCAT) emerges as a standout performer, experiencing an exceptional 36% surge in just 24 hours, propelling the token towards its previous all-time high achieved back in July, reflecting the revived interest in memecoins amidst evolving economic landscapes.
Popcat's Remarkable Growth
The Federal Reserve's decision to cut the federal funds rate by 0.50 percentage points signals a significant shift in the wake of the pandemic, lowering the target range to 4.75%–5%. This move is perceived as a positive indicator for the broader market, hinting at potential price upticks while anticipating some level of volatility.
In response to this news, Solana witnessed a nearly 10% upsurge in the last 24 hours, approaching the $150 threshold after reclaiming pivotal support levels. This momentum has kindled renewed trust in tokens built on the Solana network, vividly reflected in Popcat's performance.
Currently trading at $0.918, Popcat hovers just 7% below its all-time high of $0.993 achieved two months ago. The recent surge accompanied a remarkable 236% surge in trading volume, edging close to the $200 million mark within a mere 48 hours, according to CoinGecko data.
Longer time frames unveil Popcat's noteworthy trajectory, with a 44% surge over the past week and a 62% rise over the last two weeks, resulting in nearly a 100% gain in the past month. This growth stands out amidst larger cryptocurrencies that have seen losses in the wake of significant market downturns.
Key Thresholds for Popcat
While Popcat has demonstrated an upward trend, it faced challenges in sustaining its momentum. The token encountered resistance at the $0.939 level on its POPCAT/USDT daily chart, posing a significant hurdle towards approaching its previous highs.
Surpassing these resistance levels could pave the way for further upward movement, with the next resistance level marked at $0.971. Failure to break through these levels may prompt a consolidation phase, necessary for strengthening future upward movements.
On the downside, investors should monitor the $0.834 level, which serves as the nearest support floor for the memecoin. A breach below this level may indicate a possible correction, with the following support at $0.72, signifying a substantial decline from its current trading price of $0.918.
Image credit: DALL-E, chart credit: TradingView.com
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Unsplash and/or other free sources. They are illustrative and may not represent the content truly.
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