The meme coin POPCAT (POPCAT), built on Solana, has captured attention with its remarkable 40% price rally, shifting the market sentiment towards a bullish trajectory. After weeks of lackluster performance, POPCAT’s price action has reignited investor interest, climbing to $0.305 and reclaiming the critical $0.30 support level. The surge has also resulted in a notable increase in trading volume, which spiked 38% within the past 24 hours.

This price recovery follows the formation of a bullish falling wedge pattern on the daily timeframe. Over the past few months, POPCAT had lost critical support levels, including $1.12, $0.70, and $0.30. However, the current rally signals a potential reversal of the downtrend, as the meme coin edges closer to a breakout above $0.40. Technical analysis suggests that if POPCAT manages to sustain this momentum and close above $0.40, it could rally 80% to reach $0.70, with an eventual target of $1.12 and beyond.

Despite this optimism, data from Coinglass highlights an inflow of $2.15 million worth of POPCAT into exchanges, signaling possible profit-taking by whales and long-term holders. Historically, such inflows can lead to increased selling pressure, potentially stalling the rally. However, the market’s lack of a significant bearish reaction hints at sustained bullish sentiment among traders and investors.

Currently trading below the 200 Exponential Moving Average (EMA) on the daily chart, POPCAT remains technically in a downtrend. However, its strong upward momentum could attract further participation, paving the way for the meme coin to achieve higher price levels. The next few days will be crucial in determining whether POPCAT can successfully break out and maintain its bullish trajectory or succumb to selling pressure from recent inflows.