Popcat price rally gains steam as tokens on exchanges dip

Popcat, a leading meme coin on the Solana network, extended its bullish momentum on Tuesday, reaching its highest level since March 3.

The Popcat (POPCAT) token climbed to $0.2722, nearly doubling from its lowest point this year. Its market capitalization has surged to $254 million, making it the sixth-largest meme coin in the Solana ecosystem.

Popcat’s surge has coincided with the ongoing recovery of other meme coins. Top Solana meme tokens like Fartcoin (FARTCOIN), Dogwifhat (WIF), Peanut the Squirrel, and cat in a dogs world have soared by over 20% in the last seven days. 

Data from third-party sources shows that the amount of POPCAT tokens held on exchanges has fallen over the past week. There are now 237.85 million tokens on exchanges, representing a nearly 10% decrease. The total share of supply held on exchanges has dipped to 24.24%.

A drop in the number of tokens on exchanges is a bullish sign since it is a sign that investors are moving their coins to self-custody. 

On-chain data from Nansen also shows strong conviction among profit-leading holders. The most profitable Popcat trader over the past week has made nearly $2 million and is still holding 99% of their tokens. Another top trader, with $121,000 in realized gains, is also holding 99% of their holdings.

Popcat price technical analysis

The daily chart shows that Popcat had been in a sustained downtrend since peaking at $2.07 in November and has bottomed out at $0.1590 earlier this month. It is now forming a double-bottom pattern which is classic bullish reversal sign.

Indicators like the Relative Strength Index and the Percentage Price Oscillator are pointing upward, indicating a bullish divergence is forming. If momentum continues, Popcat could rally toward the psychological resistance at $0.50 which is around 100% above its current level. However, failure to hold recent gains may indicate further downside.