Coin World Report:
Simon’s Cat Cryptocurrency Shows Strong Bullish Momentum and Trading Volume
The meme coin has reached a two-month high in terms of divergence and may experience a pullback.
Simon’s Cat experienced a significant rebound this week. Since mid-September, the Meme Coin has been trading within a range. On October 21st, Binance announced that the token would be listed on its derivative market.
At the time of writing, the trading price of CAT is only 6.4% lower than the high point of the range. However, there is a divergence between price and momentum. Will Simon’s Cat Cryptocurrency experience a deep correction?
The range (in purple) has expanded from $0.0000236 to $0.0000466. The midpoint of this range, at $0.000035, has served as both support and resistance over the past two months.
The Money Flow Index, sometimes referred to as the Volume Weighted RSI, combines trading volume and price data. The oscillator has formed lower highs over the past two days while the price has surged.
This is a bearish divergence, indicating that the price may soon retreat. Given its proximity to the high point of the range, it is likely to be rejected at the $0.0000466 level.
If rejected, the support levels at $0.000038 and $0.000035 could provide a good buying opportunity.
Open interest and funding rates trend
While the price of Simon’s Cat Cryptocurrency has almost doubled since Monday, open interest has increased by approximately 500%. It was $6.7 million on the 21st and is now $36 million at the time of writing.
However, in the past 48 hours, the funding rate has cooled down. This suggests that the bullish sentiment is losing the strength it showed earlier this week.
Overall, the market sentiment remains bullish but may retreat to a mid-range level.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice and solely represents the opinion of the author.