🌎 Popcat Price Plunges Over 62%

Popcat Price Plunges Over 62% Amid Rising Competition in Solana Meme Coin Market

Popcat, a Solana meme coin that experienced a massive surge of over 4,400% in 2024, is struggling to maintain its market share as its token price continues to decline. The Popcat price has plummeted by over 62% from its highest level this year, resulting in a market capitalization of $762 million. This significant drop has pushed Popcat from being the second-largest Solana meme coin to the sixth position, surpassed by other popular tokens such as Pudgy Penguins, Dogwifhat, Fartcoin, and ai16z.

Declining Smart Money Investor Interest

According to Nansen, the number of smart money investors holding Popcat tokens has decreased from over 70 to 30. This decline in investor interest is further reflected in the total number of tokens held by smart money investors, which has dropped from 2.10 billion in May to 2.07 billion currently.

Rising Tokens on Exchanges

Another indication of the sell-off is the increasing number of Popcat tokens on exchanges. In the last seven days, the number of tokens on exchanges has risen by 2.77% to over 248.32 million, signaling that investors are actively selling their holdings.

Competition in the Solana Meme Coin Market

A likely reason for Popcat’s decline is the highly competitive nature of the Solana meme coin market, with new tokens frequently gaining popularity. Recent examples include Pudgy Penguins, which has become the second-largest Solana meme coin, as well as Peanut the Squirrel, Goatseus Maximus, and Moo Deng.

Bearish Patterns in Popcat Price Chart

The daily chart shows that the POPCAT token has formed several bearish patterns, indicating potential further drops. A head-and-shoulders pattern with a neckline at $1.900 was formed, which the token moved below on December 14. Additionally, the 50-day and 100-day moving averages have formed a bearish crossover, often seen as a mini-death cross.

A bearish pennant pattern, consisting of a long vertical line and a symmetrical triangle pattern, has also been formed. This pattern typically leads to a bearish continuation. Furthermore, Popcat has moved to the 61.8% retracement level, with the next target to watch being at the 78.6% retracement point at $0.4470, approximately 42% below the current level.

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