Popcat and Dogs are the two top-gaining tokens in the 100 largest cryptocurrencies by market cap as Bitcoin price climbs back above $56,000.

The meme coins Popcat (POPCAT) and Dogs (DOGS) traded at $0.62 and $0.0011, with 19% and 16% in 24-hour gains respectively at the time of writing. Upside momentum meanwhile had pushed Bitcoin (BTC) price above $56,500 as bulls fought to recover from the dip that saw the leading digital asset trade near $53,300 on Sept. 7.

Futures listing helps POPCAT, DOGS higher

Most meme coins have struggled for upward momentum in recent weeks, mainly as the broader market experienced downward pressure throughout August.

However, like many other small cap tokens, Solana(SOL)-based Popcat and Telegram-related Dogs have benefited from a rush of positive sentiment following crucial futures trading support across major exchanges..

Binance recently added POPCAT perpetual contracts, allowing traders to bet on the meme coin’s price. This move caused Popcat’s price to spike significantly. OKX also added POPCAT futures and outlined a trading contest that offers up to $100 in rewards.

DOGS, which slipped amid the recent arrest of Telegram CEO Pavel Durov, has recovered some of the losses since falling to $0.0009 on Sept. 8. Previously, the Telegram-native meme coin had rallied thanks to Binance’s offering of 40 million DOGS in a contest that ends on Sept. 17.

Binance, OKX, and Bybit are some of the top exchanges supporting the DOGS airdrop and token listing.

Bitcoin recovers above $56k

Bitcoin’s recovery to above $56,500 comes amid a bounce in the Coinbase Premium Index, a metric indicating increased whale and institutional accumulation of BTC.

A rebound in U.S. demand may help bulls reposition for a stronger end to the fourth quarter. Analysts at CryptoQuant see the continued accumulation by long-term holders as key to a potential price bounce.

Bernstein analysts issued a note on Sept. 9 predicting a surge to $80k-$90k for BTC if Donald Trump wins the U.S. presidential election.

However, they suggested that a win for Kamala Harris could trigger downside action, potentially pushing BTC to lows of $30,000. The contrast is rooted in the crypto industry’s perception of Trump as more crypto-friendly compared to Harris.

Cardano dropped 57% when the Federal Reserve cut rates back in 2019. With another rate cut on the horizon, the cryptocurrency faces a similar setup that could bring major downside.

Cardano prepares for September decline

In May 2019, the Federal Reserve initiated its first rate cut, lowering rates from 2.42% to 2.39%. Rates at that time were much lower than today, and the public debt stood at $22 trillion. Today, debt has increased to nearly $35 trillion, and interest rates now stand at 5.33%, more than double the 2019 levels.

When the rates started to fall in 2019, Cardano experienced a sudden drop. After a brief period of recovery, the downtrend continued for months until early 2020. An uptrend emerged later, but the market downturn during the COVID-19 pandemic coincided with further rate cuts. Despite uncertainties around the exact link between rate cuts and crypto declines, Cardano and the broader market saw a clear decrease in value.

A similar scenario could unfold today. Crypto has shown correlations with traditional finance in the past, including during the 2019 rate cut. The Federal Reserve’s upcoming meeting is likely to result in a rate cut based on CME data. If the market follows the 2019 pattern, Cardano could face a multi-month decline, which could last until the end of the year, before recovering in early 2025. A repeat of the previous trend could push Cardano’s price down to around $0.15.

Additionally, September has often proven to be a tough month for both stocks and crypto. In September 2020, during a halving year, Cardano also faced a downtrend. Coupled with the current 10% drop since the start of this month, these factors could drive Cardano toward a deeper fall in the weeks and months ahead below its 2022 support line at $0.2349.

Cardano’s bearish momentum grows with SRSI, MACD, and VRVP

Many traders focus on short-term movements, but stepping back for a longer-term view can give a better sense of the bigger picture. Cardano’s monthly Stochastic RSI (SRSI) and MACD are flashing warning signs that shouldn’t be ignored, and both are painting a rough picture for ADA.

The SRSI tracks momentum by looking at an asset’s price range over time. The scale goes from 0 to 100, with anything below 20 showing oversold conditions. Since March 2024, the SRSI has been sliding, and it’s now closing in on that oversold region.

The MACD, meanwhile, is showing similar bearish vibes. On the monthly chart, the MACD line has already crossed below the signal line, which is a sign of downward pressure. The histogram, which shows the gap between the two lines, is about to flip red, also pointing to a growing bearish momentum.

Alongside the bearish signals from the Stochastic RSI and MACD, the Visible Range Volume Profile (VRVP) adds even more negative pressure to the outlook. The VRVP shows where most trading volumes occurred at various price levels. In Cardano’s case, the volume bars within the current price range are quite thin, which indicates weak support. The biggest volume bar begins at the $0.15 level, suggesting a strong support zone there. Below the current price, there’s a gap in the volume profile, which means if Cardano continues to fall, there’s little trading activity to slow down the drop until it reaches that $0.15 zone.

Is Cardano’s 2022 support line strong enough to hold?

Despite the bearish indicators, a couple of factors could prevent Cardano from dropping sharply. At the moment, the price sits within a macro Fibonacci golden pocket, drawn from the all-time low to the recent high in March 2024. This zone, between $0.2951 and $0.3204, has acted as support for now. However, when looking at other Fibonacci retracements from different points, ADA has already fallen below the 78.6% retracement on every one of them. This could raise doubts about the strength of the current golden pocket, as there’s a possibility it may not hold up in the long term.

A stronger support level, however, lies at $0.2349, a line that was respected during the 2022 bear market. But, with ADA currently around $0.315, a drop to that support would still represent a 25% decline, which would be far from ideal. 

Strategic considerations

In our view, there could be a dead cat bounce before the September 18 Fed meeting. However, after that, ADA is likely to face a 2-3 month downtrend until the Fed slows the pace of its rate cuts. A more cautious strategy would be to wait for ADA to drop below the $0.2951 golden pocket before shorting. This offers a safer entry point compared to shorting immediately right now, as Cardano could see a short-term uptrend while holding above the golden pocket. If the price falls below this level, shorting down to $0.2349 becomes a more calculated move.

A crypto trader made a huge profit by trading DOGS tokens on Aug 26 after a series of trades on centralized and decentralized digital asset exchanges. The token has dominated industry trends after the market anticipated major listings on centralized exchanges. This propelled the asset to gains in the last couple of hours daily numbers are in the red zone.

Crypto Trader Makes Huge Profit on DOGS

A DOGS trader made good profits on his assets amid the buzz generated in the last few hours. According to Lookonchain, the trader made over 400% profits on the asset totaling $77.3k from an initial $18.4k investment. The trader made this huge profit from transactions between DEXs and CEXs respectively as the asset began trading on DEXs hours before it was listed on CEXs. 

Initially, the user purchased 55.9M DOGS with 3271 TON worth approximately $18.4k. Subsequently, the crypto trader sold 20 million tokens for 6150 TON at about $34.6k. Finally, the holder deposited the balance on centralized exchanges and made $420% in profits. About 35.9 million DOGS worth $61k while raking in $77k.

Reactions across crypto spaces were positive with enthusiasts projecting a price growth on the heels of market optimism and the listing buzz. The first transaction took place when the price of the asset was at $0..00013. At press time, DOGS price stands at 0.001216 making a 3% growth in the last couple of hours.

A smart trader has made over 400% profit by trading $DOGS!

How did he do it? 👇$DOGS was already available for trading on #DEX a few hours before listed on #CEX, with the price as low as $0.00013.

The smart trader spent 3,271 $TON($18.4K) to buy 55.9M $DOGS, sold 20M $DOGS… pic.twitter.com/zqSxyEf0Xk

— Lookonchain (@lookonchain) August 26, 2024

What’s Behind the Buzz? 

The crypto trader as well as other users have been attracted to the buzz behind the token in recent times. DOGS is a native Telegram meme coin with utility in the network’s ecosystem around non-fungible tokens (NFTs) and more. Most of the momentum came from announced centralized exchange listings on Aug 26. DOGS is listed on major platforms including OKX, Gate.io, and Bybit. A significant factor was the project being listed by Binance as the 57th protocol in the launchpool.

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David Pokima

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.