The Cash Cat [CASHCAT] memecoin recorded one of the notable rebounds on the 3rd of November, at a time when the broader crypto market remained in a somewhat neutral but bullish phase, with market capitalization hitting $2.61 trillion.

The asset is up 11% in the past 24 hours, driven by growing interest in the perpetual market and broader capital flows, which suggest memecoin traders may be preparing for another mini-rally. However, the path towards a rally is not a clear one, as obstacles still lie ahead.

Why Cash Cat is rallying

The surge in Cash Cat’s price has perpetual traders at its center. CoinGlass showed that the Funding Rate surged significantly, reaching a high of 0.0432% as of November 4, indicating that traders are opening more long positions than shorts.

This situation occurs when traders holding long positions pay the periodic funding fee as the price moves in their direction.

During this period, Open Interest, which measures the capital in the perpetual market, has also expanded, reaching $50.77 million. Roughly 18%, or $9.23 million, of that inflow has come in the past 24 hours.

In simple terms, the significant capital inflows and positive Funding Rate suggest that traders are directing fresh capital into long positions to support the rally.

Perpetual volume turns bullish

Trading volume across the perpetual market has reflected the growing bullish sentiment.

Perpetual trading volume, tracked through the Long/Short Ratio, shows that over 51% of the total trading volume in the past 24 hours came from long positions, implying more buying activity.

Volume analysis showed that buying activity exceeded 50% across major cryptocurrency exchanges, including Bybit, Gate, and Hyperliquid.

This is important to note, especially when the buying volume comes from exchanges that control a significant portion of the market’s Open Interest, meaning traders on these platforms are likely concentrating their capital on long positions.

Momentum builds as resistance looms

Chart analysis points towards the market seeing a significant momentum push, with the Money Flow Index (MFI) and the Bull Bear Power (BBP) indicating this development.

The Money Flow Index crossed above the 50 threshold while maintaining a level of 56.7 over the past day, suggesting that the market is now in a more bullish and stable phase. This phase brings more capital into CASHCAT, further strengthening its existing momentum.

In addition to this, the Bull Bear Power (BBP) indicator has formed two consecutive green bars on the chart, showing that investors are bullish. Yet, given that both histogram bars formed on the 3rd and 4th of November are moderate in size, this reflects that prices are not completely bullish yet.

Chart pattern analysis shows that if bulls maintain their strength, the price is likely to face an obstacle at the $0.122 level, which could significantly weigh on the momentum gathered so far.

Final Summary

  • Cash Cat surges as its Funding Rate climbed to 0.0432% and Open Interest reached $50.77 million.

  • Bullish momentum is building, but the $0.122 price level remains a major resistance that could limit further gains.

Cash Cat surges as its Funding Rate climbed to 0.0432% and Open Interest reached $50.77 million.

Bullish momentum is building, but the $0.122 price level remains a major resistance that could limit further gains.