What is behind the surge of Simons Cat cryptocurrency which has risen 12 in one day and 86 in three years

BiJie.com reports:
Simon’s Cat cryptocurrency has strong bullish momentum and trading volume.
The meme has reached a two-month high in terms of divergence and may experience a pullback.
Simon’s Cat has seen a significant rebound this week. Since mid-September, the Meme Coin has been trading within a range. On October 21, Binance announced that the token would be listed on its derivatives market.
At the time of writing, the trading price of CAT is only 6.4% lower than the range high. However, there is a divergence between price and momentum. Will Simon’s Cat cryptocurrency experience a deep correction?
The range (in purple) has expanded from $0.0000236 to $0.0000466. The midpoint of this range, at $0.000035, has served as both support and resistance over the past two months.
The funding flow index, sometimes referred to as the volume-weighted RSI, combines volume and price data. The oscillator has formed lower highs in the past two days while the price has surged.
This is a bearish divergence, indicating that the price may soon retreat. Given its proximity to the range high, it is likely to be rejected at the $0.0000466 level.
If rejected, the support levels at $0.000038 and $0.000035 could provide a good buying opportunity.
Open interest and funding rates trend
While the price of Simon’s Cat cryptocurrency has almost doubled since Monday, open interest has increased by about 500%. It was $6.7 million on the 21st and $36 million at the time of writing.
Read more: Simon’s Cat [Cat] Price Prediction 2024-25
However, in the past 48 hours, the funding rate has cooled down. This suggests that the bullish sentiment is losing the strength it showed earlier this week.
Overall, market sentiment remains bullish, but a pullback to mid-range levels is possible.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice and only represents the opinion of the author.