- Simon’s cat cryptocurrency has strong bullish momentum and trading volume.
- Differences in memes near two-month highs could point to a downward trend.
Simon’s Cat (CAT) had a big rally this week. The meme coin has been trading within a certain range since mid-September. It surged from its lows on October 21 after Binance announced it would list its tokens on the derivatives market.
At press time, CAT was trading 6.4% below its peak. However, there was a gap between price and momentum. Will Simon’s Cat Cryptocurrency See a Deep Retracement?
Signs of Hyperextension
Source: CAT/USDT on TradingView
The range formation (purple) extended from $0.0000236 to $0.0000466. The midpoint of this range was $0.000035, which has served as support and resistance for the past two months.
The Money Flow Index is also called volume-weighted RSI because it combines volume and price data. The oscillator has made lower highs over the past two days and the price has risen.
This is a bearish divergence and a sign that the price is likely to bounce back soon. Given its proximity to the range high, rejection near the $0.0000466 level is likely.
The $0.000038 and $0.000035 support levels are likely to present good buying opportunities if rejected.
Open Interest and Funding Rate Trends
Source: Coin Analysis
The price of the Simon’s cat cryptocurrency has nearly doubled since Monday, but open interest has increased by about 500%. It was $6.7 million on the 21st, and reached $36 million at press time.
Read Simon’s Cat (CAT) Price Forecast for 2024-25
However, the funding rate has cooled in the last 48 hours. This showed that optimistic sentiment was losing the strength it showed earlier in the week.
Overall, sentiment remained optimistic but likely to fall to intermediate levels.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.