The POPCAT chart indicates a clear descending channel, with the price consistently rejecting the upper boundary and finding support at the lower trendline. This structure indicates a controlled downtrend, but the price is getting squeezed, suggesting a possible breakout soon.
The most recent touch of the lower channel predicts exhaustion in selling pressure, aligning with top crypto analyst Edward Morra’s observation that the price action is suppressed within a tight range.
Price Compression Near Key Levels
The price of POPCAT has been moving within a descending channel, with price action tightening. The recent compression in POPCAT’s price might lead to a breakout. While the trend remains bearish, signs of exhaustion are appearing.
Crypto analyst Edward Morra points out on X, that POPCAT’s price has been subdued into a tight channel. The longer it stays compressed, the stronger the potential breakout. The key question is whether a breakdown below support leads to a quick recovery or further downside.
Potential Liquidity Grab at the Lows
The lower boundary has been key support, and a brief dip below it could be a liquidity grab before the price moves up. Crypto analyst Edward Morra hinted on X, that this scenario involves a breakdown, quick reclaim, and push toward the channel top. This move often traps short sellers and forces them to cover.
If the price of POPCAT pulls through, it signals strength. But if it lingers below support, the risk of further downside grows. Reaction at this level will be crucial in determining the next move.
Key Levels to Monitor
With price consolidation, a precise move is coming. If POPCAT follows Edward Morra’s indication of a quick breakdown and reclaim, it could push toward the upper channel. But if it fails to recover key levels, further downside toward $0.25 is likely.
Watching volume and structure will help confirm direction. Whether up or down, volatility is coming.
POPCAT’s Squeezing Price Action: Are We About to See a Breakout? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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