- Popcat has declined by 8.55% over the past week.
- Analyst eyes another drop before the memecoin attempts an uptrend citing wave 4 of Elliot wave.
While the crypto market has experienced a strong price recovery with Bitcoin [BTC] hitting a new ATH, some altcoins still lag behind. The list includes Popcat [POPCAT], which has seen a sharp decline over the past week.
In fact, at the time of writing, Popcat was trading at $1.51. This marked a 2.17% decline over the past day with an extension to this bearish trend by an 8.55% decline on weekly charts.
Prior to this, the memecoin was on an upward trajectory, hiking by 23.14 % on monthly charts. Since hitting a local low of $0.9, the memecoin saw a strong uptrend reaching $1.8.
However, the recent decline has left various analysts projecting a further dip.
Market sentiment
In his analysis, crypto analyst Man of Bitcoin posited that Popcat prices have reacted to the wave 4 support area of Elliot wave.
Source: X
This implies that Popcat is finding support at wave 4 which is usually a corrective wave. If the memecoin finds support here, it could see an end to the recent decline and return to upward movement.
According to the analyst, a sustained break above wave-3 high would confirm further that wave-5 is already unfolding.
This suggests that if Popcat breaks from wave 3, it could suggest the end of correction, thus paving the way for wave 5 which signals a continuation of an uptrend.
However, the analyst noted that wave 4 is usually long and it takes time to complete. Therefore, even with a potential upward move, it could be a part of the large wave 4 correction.
In such conditions, the visible upward movement seen within wave 3, signaling the completion of wave 4, could result in more correction as wave 4 is complex and involves other patterns such as zigzag.
Therefore, if the prices fail to break above wave 3, it will signal the price is still in the correction phase and Popcat could see further decline on its price charts before attempting another uptrend.
Is Popcat set for further decline?
Based on Elliot wave analysis, the memecoin could see a strong dip before attempting another uptrend.
Read Popcat’s [POPCAT] Price Prediction 2024–2025
Looking at the recent price action, Popcat is experiencing strong bearish sentiment although in the short term.
Therefore, if the prevailing conditions hold and bears continue to dominate, Popcat will find its next support at $1.38. A breakout from this level will allow the memecoin to see the start of Wave 5 challenging the $1.7 resistance level.
