Popcat, a leading Solana meme coin, has re-entered a bear market, dropping over 22% from its highest point this week. The Popcat token fell to a low of $0.6098, marking its lowest level since August 23, and erasing most of the gains made earlier this month. This decline has resulted in a market cap of over $608 million.

Popcat’s Futures Open Interest Remains Stable

Earlier this month, Popcat saw a seven-day consecutive rise after it was listed on major exchanges, allowing users to trade with up to 75x leverage. Following its listing on Binance, more exchanges like KuCoin Futures and OKX also listed Popcat’s futures this week.

Cryptocurrencies often experience sharp increases after being listed on top exchanges, followed by a pullback as initial excitement wanes. This pattern explains why Popcat’s futures open interest has remained relatively stable. As of Friday, August 30, it stood at $50.63 million, with most of it coming from exchanges like Binance, Bybit, and Bitget. Although this was slightly lower than the week’s high of $59.8 million, it indicates ongoing demand for Popcat among traders.

Market Trends Reflect Popcat’s Performance

Popcat’s recent decline mirrors the performance of many larger cryptocurrencies. For instance, Bitcoin has consolidated around the $60,000 level, while other meme coins like Dogecoin, Shiba Inu, and Floki have also seen drops over the past seven days.

The crypto fear and greed index, a popular measure of sentiment, has retreated from this month’s high of 59 to a neutral point of 46. Meme coins like Popcat thrive when traders are a bit greedy.

Additionally, Popcat and other Solana meme coins face substantial competition from newly launched Tron (TRX) tokens, which have accumulated a market cap of over $370 million.

Key Support Level Crossed

This week, Popcat peaked at $0.8072 before suffering a sharp reversal, falling 21% to $0.6283, the lowest point since August 23. It dropped below the key support level of $0.6845, the highest swing on August 29, and the upper side of the cup and handle pattern. Additionally, it retested the 50% Fibonacci Retracement point and formed a bullish flag pattern.

Given these technical indicators, Popcat’s price may likely experience a bullish breakout, with the next key level to watch being the psychological $0.70 mark.

For more cryptocurrency news and updates, stay tuned to Global Crypto News.

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