Popcat surges 12% to a monthly high amid whale accumulation
Key Takeaways
Popcat soared 12.89% to a monthly high of $0.41 before retracing to $0.39. At the same time, whales increased their holdings by 43.57% to $634.09 million.
Popcat [POPCAT] soared 12.89% bouncing off its recent low of $0.34 to a monthly high of $0.4117, then retraced to $0.39 by press time.
Over the same period, the memecoin’s trading volume hiked by 76.23% to $100 million, reflecting growing on-chain activity.
What’s behind Popcat’s continued uptick?
Popcat whales drive the rally
After pushing Popcat for a breakout from consolidation four days ago, whales returned, attempting another leg up.
According to Nansen, top holders rose by 43.57%, reaching 634.09 million as of this writing. This propelled top addresses to 64.67% of the total supply held.
Source: Nansen
Thus, large holders bought 3.76 million tokens while they offloaded 2.64 million. As a result, Popcat whales recorded a positive Balance Change of 1.21 million.
A positive balance typically indicates that whales are aggressively buying, a clear sign of market conviction among large entities.
Source: CoinGlass
In return, exchanges also recorded more outflows than inflows as whales reduced exchange activity.
According to Coinglass, Netflow dipped to -$46k, extending a four-day exchange netflow decline, further confirming aggressive accumulation.
Futures eye more gains too
As Popcat jumped to a monthly high, investors rushed into the market to take strategic positions.
According to Coinalyze, Long/Short Ratio surged to 2.361, implying a higher demand for long positions. As such, longs accounted for 70.85% while shorts accounted for 29.15% of the total positions.
Source: Coinalyze
When long positions dominate, it suggests that investors are actively betting that prices will continue to rise. This is a clear sign of market conviction across Futures participants.
Retailers are cashing out aggressively
Surprisingly, while whales are accumulating, small-scale investors are closing their positions. According to Coinalyze, Popcat has recorded three consecutive days of a negative Buy-Sell Delta.
Source: Coinalyze
On the 14th of July, the memecoin saw 8.37 million in Sell Volume compared to 8.10 million in Buy Volume. As a result, the market recorded a negative Buy-Sell Delta of -266k, a pattern observed since the 11th of July.
Can Popcat hold recent gains?
According to AMBCrypto’s analysis, Popcat recorded significant gains amid aggressive whale accumulation.
For the uptrend to hold, whales must continue accumulating at the same speed. In such a case, demand from large entities will push Popcat towards $0.45.
However, if retailers exiting the market increase pressure while whale momentum fades, a correction is inevitable. Thus, increased profit taking from retailers will push Popcat down towards $0.35 support.