Memcoin hype is making a significant comeback as Solana-based tokens outperform larger cryptocurrencies, especially after the Federal Reserve’s recent announcement of interest rate cuts.
Among the standout performers is Popcat (POPCAT), which experienced a massive 36% surge in just 24 hours, bringing the token close to its all-time high reached in July this year, highlighting the renewed enthusiasm for memcoins amid changing economic conditions. .
Popcat records almost 100% growth in a month
On Wednesday NewsBTC reported that the Federal Reserve announced its first rate cut in four years, cutting the federal funds rate by 0.50 percentage points. The adjustment marks a significant shift since the start of the COVID-19 pandemic, lowering the target range to 4.75-5% from 5.25-5.5%.
These rates were the highest since 2001, and the decision is seen as a bullish signal for the broader market, suggesting potential price increases in the near term, even with expected volatility.
In response to the news, Solana’s price has risen nearly 10% in the past 24 hours, approaching the $150 mark after successfully reclaiming key support levels. This momentum has contributed to renewed confidence in Solana-based tokens. netexemplified by Popcat’s performance.
Popcat shares are currently trading at $0.918 and are just 7% off their all-time high of $0.993 reached two months ago. The latest increase coincides with a staggering 236% increase in trading volume, approaching the $200 million mark in just 48 hours, according to CoinGecko. data.
Looking at a longer time frame, Popcat has seen significant growth, recording a 44% increase in the last week and a 62% increase in the last two weeks.
This represents an almost 100% gain over the past month, which is especially striking compared to larger cryptocurrencies that have suffered losses after significant market downturns August 5 and September 6.
Key Levels to Pay Attention to for Solana Based POPCAT
Despite the recorded upward trend, today POPCAT is facing difficulties in maintaining its momentum. The token hit a daily high of $0.936 but struggled to settle above the critical resistance level of $0.939 on the daily POPCAT/USDT chart.
This resistance represents one of the last major hurdles for Popcat before it can approach its all-time high recorded in July. Should a token break through this barrier, the next level of resistance $0.971.
Failure to cross both levels may result in a short consolidation phase, which may be necessary for the token to gain the strength needed to move higher. However, if the current uptrend loses momentum, failure to overcome these resistance levels could hinder Popcat’s progress.
On the other hand, bullish investors should keep a close eye on the $0.834 level as it serves as the nearest support level for memcoin. This could indicate a potential correction if the price falls below this support..
In this case, the next support level on the daily chart will be significantly lower at $0.72. If the price reaches this level, it would represent a significant decline of approximately 21% from the current trading price of $0.918.
Featured image from DALL-E, chart from TradingView.com
