Popcat, the meme coin from the Solana blockchain, has experienced a significant downturn, dropping by over 62% from its peak this year, despite an impressive increase of over 4,400% earlier in 2024.
The price decline has reduced Popcat’s market capitalization to $762 million, causing it to fall from the second-largest Solana meme coin to the sixth position, now trailing behind Pudgy Penguins, Dogwifhat, Fartcoin, and ai16z.
Market activity suggests that many smart money investors are offloading their Popcat holdings. Analysis indicates that the number of these prominent investors has decreased from over 70 to just 30, with the total number of Popcat tokens held by them dropping from 2.10 billion in May to 2.07 billion currently.
The total supply of Popcat tokens available on exchanges has also been rising, increasing by 2.77% over the past week to exceed 248.32 million tokens. This trend indicates a selling pressure among investors.
One contributing factor to Popcat’s decline is the competitive nature of the Solana meme coin market, which has seen several new tokens gaining popularity. Recent contenders like Pudgy Penguins have quickly ascended to become significant players, following previous hits such as Peanut the Squirrel and Goatseus Maximus.
Bearish Trends Emerge for Popcat
Technical analysis reveals concerning patterns for Popcat’s price trajectory. The daily chart reflects the formation of several bearish signals, notably a head-and-shoulders pattern that has fallen below the critical $1.90 neckline established on December 14.
Additionally, the 50-day and 100-day moving averages have exhibited a bearish crossover, often indicative of a mini-death cross scenario. A bearish pennant pattern has also emerged, characterized by a vertical decline followed by a symmetrical triangle, which typically suggests further downward movement.
Currently, Popcat is testing the 61.8% retracement level, with analysts projecting a bearish outlook and a potential next target at the 78.6% retracement level of $0.4470, positioning it approximately 42% lower than its current valuation.
