Cash Cat [CASHCAT] has been on a meteoric rise, with the memecoin linked to the Robinhood chain delivering 18% gains to investors at the height of the rally in the past day as of writing.
The memecoin, which has been on the upside for days now, is likely to extend its gains even further, as multiple exchange data points show that buying activity in the market is still strengthening without overheating.
Exchange flow remains peak
One of the biggest factors showing that CASHCAT has remained on the bullish side is its Open Interest (OI), which has hit a new all-time high of $34.92 million in the market.
The OI measures the capital in the perpetual market of an asset, and a continued surge, especially when the price is rallying, shows that traders are optimistic about future returns.
The weighted Funding Rate, which tracks positioning in the market and shows whether the majority of capital is going long or short on CASHCAT, shows that long bets remain high.
At press time, CoinGlass reported that the Funding Rate reached 0.0680%, which, compared with the average seen across multiple altcoins, remains at a relatively high level.
Overall, this shows that there is a growing willingness among traders to capitalize on the ongoing rally as they expect more gains.
Will CASHCAT become overheated?
Assets accruing notable gains often raise questions about how much risk investors are taking and whether the market has become overheated. Capital flow in the perpetual market shows that there have been more outflows in recent days.
In the last 24 hours alone, netflow data shows traders sold $268,000 worth of CASHCAT, suggesting that some investors took profits. Over the past ten days, traders have sold approximately $70.3 million worth of CASHCAT, with netflows recording a cumulative outflow of $1.36 million.
Importantly, these outflows matter, as in an overheated market or when prices become overvalued, there is usually more capital inflow as traders open short positions, while open interest declines.
This has not been the case here. For now, traders are likely to continue holding long positions, especially as liquidation data shows that more short positions have closed than long positions.
Short positions accounted for roughly $145,000 in liquidations compared with just $1,200 for longs in the last 24 hours.
Robinhood growth has been key
The growth of CASHCAT has been closely tied to the performance of the Robinhood chain, where the memecoin was launched.
Robinhood has continued to see steady growth since launching its own blockchain, with its Total Value Locked (TVL), which measures deposited assets across the blockchain, reaching a new all-time high of $508 million.
This suggests there is currently an inflow of capital into its ecosystem, and by default, capital tends to flow toward assets with higher return potential, which CASHCAT has benefited from.
For now, going short on CASHCAT could attract significant losses if the current momentum continues, as investors remain focused on the memecoin’s growth.
Final Summary
- CASHCAT’s rally remains supported by rising open interest and strong long positioning across the perpetual market.
- Robinhood chain growth has boosted ecosystem activity, helping drive capital toward CASHCAT amid the ongoing rally.
