DailySun
Popcat, a meme coin on the Solana network that has surged over 4,400% in 2024, is now experiencing a decline in market share as its token value plummets.
Popcat (POPCAT) has seen its price drop by more than 62% from its peak this year, resulting in a market capitalization of $762 million. It has fallen from being the second-largest Solana meme coin to the sixth position, overtaken by Pudgy Penguins, Dogwifhat, Fartcoin, and ai16z.
The decline in Popcat’s price is attributed to ongoing sell-offs by smart money investors. As reported by Nansen, the number of these investors holding the token has decreased from over 70 to just 30. Additionally, the total tokens held by them have slightly reduced from 2.10 billion in May to 2.07 billion today.
Indicators also suggest that the quantity of Popcat tokens on exchanges has risen, hinting that investors may be liquidating their positions. The number of tokens on exchanges increased by 2.77% over the past week, now exceeding 248.32 million.
A possible explanation for this decline is the bustling activity within the Solana meme coin sector, where new tokens are frequently gaining popularity. The latest entrant, Pudgy Penguins, has now taken the spot as the second-largest Solana meme coin, following others like Peanut the Squirrel, Goatseus Maximus, and Moo Deng.
Popcat price has exhibited bearish patterns
The daily chart indicates that the POPCAT token has established several bearish patterns, suggesting a potential for further declines. A head-and-shoulders pattern has emerged, with a neckline positioned at $1.900, a level breached on December 14.
The 50-day and 100-day moving averages have produced a bearish crossover, a phenomenon often regarded as a mini-death cross.
Additionally, Popcat has formed a bearish pennant pattern, characterized by a long vertical line and a symmetrical triangle formation, which typically signals continuation of bearish momentum.
Currently, Popcat has retraced to the 61.8% level. Consequently, the outlook remains bearish, with the next critical target to observe situated at the 78.6% retracement mark of $0.4470, approximately 42% beneath the current price level.
