Solana Memecoin Soars 36%, Nears $1 and Record Highs

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The enthusiasm around memecoins is witnessing a significant resurgence as tokens based on Solana outperform larger cryptocurrencies, especially after the Federal Reserve’s recent announcement regarding interest rate reductions.

One of the key performers is Popcat (POPCAT), which has seen an impressive 36% increase in just 24 hours, bringing its value close to the all-time high achieved in July of this year, highlighting the renewed interest in memecoins amid shifting economic landscapes.

Popcat Achieves Nearly 100% Increase Over A Month

On Wednesday, NewsBTC reported that the Federal Reserve executed its first interest rate cut in four years, lowering the federal funds rate by 0.50 percentage points. This move signifies a pivotal change since the COVID-19 pandemic began, adjusting the target range to 4.75%–5%, down from 5.25%–5.5%.

These rates represented a peak not seen since 2001, and this decision is interpreted as a positive signal for the wider market, indicating potential price rises in the near future, albeit amid expected volatility.

Following this news, Solana experienced nearly a 10% rise in the last 24 hours, approaching the $150 threshold after successfully regaining essential support levels. This momentum has reignited confidence in Solana-based tokens, exemplified by the performance of Popcat.

Currently priced at $0.918, Popcat is only 7% away from its all-time high of $0.993 reached two months ago. The recent surge is accompanied by an astonishing 236% increase in trading volume, nearing the $200 million mark within just 48 hours, as reported by CoinGecko data.

When viewed over a longer timeframe, Popcat has shown remarkable growth, recording a 44% increase over the last week and a 62% increase in two weeks.

This amounts to nearly a 100% gain over the past month, particularly impressive when juxtaposed with larger cryptocurrencies that have seen declines following significant market corrections on August 5 and September 6.

Important Levels To Watch For Solana-Based POPCAT

Despite recording an upward trend, POPCAT faced challenges in sustaining its momentum earlier today. The token reached a daily peak of $0.936 but found it difficult to maintain a position above a crucial resistance level of $0.939 on its POPCAT/USDT daily chart.

This resistance level marks one of the final significant obstacles for Popcat before it can approach its previous all-time highs from July. If the token can surpass this barrier, the next resistance level to watch is $0.971.

Failing to breach both levels could lead to a brief consolidation period, which may be necessary for the token to gather the strength to push forward. However, if the current upward trend falters, the inability to overcome these resistance levels could impede Popcat’s advancement.

On the downside, optimistic investors should keep an eye on the $0.834 level, which functions as the nearest support floor for the memecoin. A drop below this support could signify a potential correction.

In such a scenario, the next support level on the daily chart is significantly lower at $0.72. If the price reaches this mark, it would represent a notable decline of roughly 21% from the current trading price of $0.918.