Popcat Price Plummets Over 40% Amid Rising Selling Pressure

The Popcat price has seen a significant decline of over 40% from its highest level this year, with signs pointing to increased selling pressure. As the third-largest meme coin on the Solana network, Popcat has retreated to $1.0342, its lowest level since October 24.

Increased Exchange Volume Sparks Concern

According to data from Nansen, the volume of Popcat coins on exchanges has increased by 7.7% over the last seven days, rising to over 223.94 million. This brings the total supply on exchanges to approximately 22.8%. The majority of these coins are held on exchanges like Bybit, Kraken, Gate, and Raydium.

This increase in exchange volume is often considered a bearish signal for a cryptocurrency, as it suggests that holders may be preparing to sell. Furthermore, the number of smart money investors holding Popcat has dropped significantly, from 85 a few months ago to 40 today.

Smart Money Investors Reallocate Holdings

The total balances held by these smart money investors have decreased from 2.196 million in September to 2.17 million currently, indicating that many savvy investors are taking profits or reallocating to other cryptocurrencies.

Popcat Holder Growth Stagnates

Additional data shows that the number of Popcat holders is not growing. With only 116,400 holders as of December 11, a small increase from the previous day, this stagnation in growth may further contribute to the bearish outlook.

Market Analysis and Technical Outlook

The daily chart shows that the Popcat price peaked at $2.07 on November 17 before embarking on a strong sell-off. It dropped and retested the 50% Fibonacci Retracement level at $1.0385. Popcat has also fallen below its 50-day moving average, with the price action suggesting the formation of a head-and-shoulders pattern, a commonly recognized bearish indicator.

Tips for Investors:

  • Monitor the Popcat price closely, as it may continue to decline.
  • Keep an eye on the key support level at $0.9975, as a break below this level could confirm the bearish outlook.
  • Consider diversifying your cryptocurrency portfolio to minimize potential losses.

“As the cryptocurrency market continues to experience a downturn, it’s essential for investors to stay informed and adapt their strategies accordingly.”

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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