Hmm. Might be a case of correlation and causation not being equal.
New & popular games will of course have been seen on recent. But was that the cause of their popularity. Would the have gotten popular regardless because of their promotion?
If doing zero promotion, being seen at some places where people look is of course of benefit, I guess. But this is horror genere and there are like 1500 new horror games each month. Even with promotion, chances are low to get popular, just because people try the game. Using a major update bump for that with a 22 days old game is futile imho. You are still on top of recent for your tags.
After a fleeting glance at your game, my impression is, that your game is doing well. And this is backed up at your ranking in this here.
https://itch.io/games/last-30-days/tag-psx
That's roughly place 30 of 130.
https://itch.io/games/new-and-popular/tag-psx
It is on page 3 of 108, so maybe people should ask you for advice ;-)