Simon’s cat crypto: Is $0.000068 just the start after breakout?

• CAT had a strongly bullish bias after gaining nearly 50% in a day.
• The volume indicators showed steady buying pressure in recent weeks despite the consolidation at $0.00004.

Simon’s cat [CAT] saw strong gains on the 16th of December. It surged by 48.6% on the day and its trading volume jumped higher by a factor of over 10. This indicated high enthusiasm to buy the breakout meme coin.

Yet, CAT faced some trouble convincingly climbing past the local resistance zone at $0.000063. Though it did set a new all-time high at $0.000068 on the day, the bulls failed to defend the former highs as support.

How deep will Simon’s cat crypto retrace?

Source: CAT/USDT on TradingView

Simon’s cat crypto had breached the three-month range highs in November, but had fallen to the 75% level at $0.00004 support zone. It tested this level multiple times, forming another range that extended to the local highs at $0.000063.

The daily close on Monday broke the range highs and set up a strongly bullish case for CAT in the coming days. A retracement in the past 24 hours could see Simon’s cat crypto retrace to the $0.000055 and $0.000052 local supports.

The daily RSI, which had been in bearish territory, burst higher on Sunday to reflect a shift in sentiment. The OBV has been trending higher since late October and this trend has not halted yet. The sustained buying pressure is likely to boost prices higher in the coming weeks.

Open Interest surge reflects sentiment shift

Source: Coinalyze

The strong surge in trading volume on the 16th of December was accompanied by a spike in Open Interest from $18 million to $54 million. The funding rate has also crept higher, from 0.028 to 0.036.

Realistic or not, here’s CAT’s market cap in BTC’s terms

However this was not as high as it was in early December, and the sentiment was not as one-sided. After the short-term retracement toward $0.000055, further gains can be anticipated.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion