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Cash Cat [$CASHCAT] is leading the top 200 coins by market cap in terms of daily gains, recording 32% at the time of press. Notably, its trading volume also surged by more than 65%, surpassing $40 million.
The gains have brought the monthly sum to 88%, while the year-to-date (YTD) hit 25.31K%, as per CoinGlass.
Furthermore, the sentiment towards memecoin had dipped, but this could change. There are two key fundamentals that have helped in this shift, reinforcing a potential bottom for the memecoin.
New DeFi utility and memecoin activity returns
As $CASHCAT showed signs of recovery after bouncing from the $0.15 zone, its sentiment was quickly shifting. This surge was driven by a new DeFi utility created on Morpho’s platform on Robinhood Chain.
That is, $CASHCAT/USDG with live yield incentives was listed on Api3, a lending market on Morpho, at 62.5% loan-to-value (LTV). This move attracts yield-seeking capital into the memecoin, creating buying pressure. Even from the broader memecoin sector, $CASHCAT was benefiting.
The sector’s trading activity surged after Arc went live. In fact, memecoin launchpads drove over 80% of Arc’s DEX volume on the first day. Launchpads accounted for $336.26 million, while other DEXs drove $74.56, a total of $410 million.
The technical outlook also supports the likelihood of retesting $CASHCAT’s all-time high (ATH) of $0.3131. Here is why:
Has $CASHCAT’s correction ended?
After staying in correction for the better part of September, $CASHCAT appears to be ending this phase. The price has broken above the 100 and 200 EMAs on the 4-hour chart following today’s surge from $0.15. At press time, the Bull Bear Power (BBP) was green with bars increasing in size, indicating bullish momentum.
$CASHCAT is currently trading above the upper boundary of its triangle pattern. The next path forward faces resistance at $0.24 and $0.28, with buying activity showing signs of decline.
This decline is evident, as the Long/Short Ratio was at 1.73, down from 2.85 on the 8th of September, indicating a decrease in buying pressure even though bulls remain as the dominant participants.
For $CASHCAT to hit $0.31, it has to hold above $0.20, $0.18, or $0.15 in the worst-case scenario, where the memecoin formed a double bottom. A breakdown of $0.15 would expose demand levels at $0.12 and $0.10.
Final Summary
- Cash Cat rallied over 32% in the past 24 hours, leading all top 200 cryptos by market cap amid new DeFi utility and a resurgence in memecoin activity.
- $CASHCAT formed a double bottom at $0.15 as the price broke above the 100 and 200 EMAs despite a decline in buying pressure.