Solana-based memecoin Popcat (POPCAT) has been making headlines over the past week after becoming the first cat-themed token to reach a market cap of $1 billion.
The token has surged over 230% in the past month, which has propelled the token to a new all-time high (ATH). However, a crypto analyst has warned investors about a possible correction for the feline sensation.
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POPCAT leads the Clowder
This month, Popcat has seen remarkable performance. The token began climbing the charts on July 11, surpassing the $900 million market cap on July 16. On that day, the Solana-based memecoin surpassed Ethereum’s MOG to become the largest cat-themed token by market cap.
Popcorn continuous its upward trajectory, reaching a market cap of $1 billion on July 20 and becoming the first cat memecoin to reach that milestone. The following day, the token hit its ATH of $0.9939, according to data from CoinGecko.
The token is currently the eighth-largest memecoin by market cap, above Cat in a Dogs World (MEW) and MOG. MEW has also performed remarkably well over the past week, with a 98.2% increase in the past seven days.
During the second quarter, cat-themed tokens saw massive growth and infiltrated the top 10 memecoins list. Furthermore, a CoinGecko survey revealed the category became 14º most popular crypto narrative in Q2.
Is a correction imminent?
Following its recent performance, some analysts and crypto investors have considered that “Popcat looks good.” Charts by Lambo Team shared on X that the memecoin had “another new breakout” earlier today.
According to the post, the token broke out of the downtrend line after successfully retesting the $0.84 mark. If the cat-themed memecoin continues above this price range, the analyst believes a retest of the $1 resistance level is possible. Based on this, he set an initial target of $1.08 “for a 25% overall move in the near term.”
VikingXBT, another market watcher, also commented on the token. For him, Popcat’s performance after its ATH “makes sense in the shorter period”. The analyst highlighted that the token “hit the psychological target that many people had”.
He stated that the current retracements and retests of the former resistance are “molto buono.” Furthermore, he suggested that investors embrace “a bit of patience” as the token resumes its climb.
However, not all analyses are confident about the memecoin’s recent evolution. performance. On Monday, renowned Altcoin analyst Sherpa shared his thoughts on X. According to the analyst, the chart “still looks decent, but I would be concerned if it prints a higher high/lower shoulder.”
![Analyst warns of POPCAT correction after 230% increase 1 Popcorn](https://thegurumedia.com/wp-content/uploads/2024/07/GTNyqUHWAAE-IWn.jpeg)
Sherpa believes that if this happens and Popcat starts selling, “all the beta cats will die.” However, the analyst clarified that he is still optimistic for now, as he believes that cat-themed memecoins “will do very well and try to catch up.”
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At the time of writing, the largest cat-themed cryptocurrency is seeing increases of 12% and 27% on the daily and weekly timeframes.
![Analyst warns of POPCAT correction after 230% increase 2 popcat, POPCATUSDT](https://thegurumedia.com/wp-content/uploads/2024/07/POPCATUSDT_2024-07-24_08-45-06.png)
Featured image from Unsplash.com, chart from TradingView.com