CAT’s Recent Performance

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 December 16th, surging by 48.6% on the day, with trading volume jumping over 10 times. This indicated high enthusiasm among buyers for the breakout meme coin.

However, CAT faced challenges in convincingly surpassing the local resistance zone at $0.000063. While it set a new all-time high of $0.000068 on that day, the bulls could not defend the previous highs as support.

How Deep Will Simon’s Cat Crypto Retrace?

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

The daily close on Monday broke above the range highs, establishing a strongly bullish case for CAT in the coming days. A retracement could see CAT fall back to support levels of $0.000055 and $0.000052.

The daily RSI, which was in bearish territory, surged higher on Sunday, reflecting a shift in sentiment. The OBV has been rising since late October, and this trend seems likely to continue, indicating sustained buying pressure that could boost prices in the upcoming weeks.

Open Interest Surge Reflects Sentiment Shift

The strong trading volume on December 16th was matched by a spike in Open Interest, rising from $18 million to $54 million. Additionally, the funding rate increased from 0.028 to 0.036.

However, this increase was not as significant as it was in early December, and the sentiment is not entirely one-sided. After the anticipated short-term retracement to $0.000055, further gains can be expected.

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