Popcat, a memecoin associated with the Solana platform, saw a rapid rise of 4400% this year but has recently faced a sharp decline. This article examines the reasons behind the market situation changes for Popcat.
Popcat Price and Market Share Decline
Popcat's token price has dropped by over 62% from this year’s peak, reducing its market cap to $762 million. Popcat moved from the second to the sixth position among Solana's meme coins, overtaken by coins like Pudgy Penguins, Dogwifhat, Fartcoin, and ai16z.
Changes in Investor Structure
'Smart money' investors have begun actively selling their Popcat shares. According to Nansen, the number of such investors has decreased from over 70 to 30, and the volume of tokens they hold has dropped from 2.10 billion in May to 2.07 billion. Additionally, the number of Popcat tokens on exchanges increased by 2.77% over the last week, indicating increased sales.
Technical Analysis of Popcat
The daily price chart of Popcat shows several bearish patterns, such as the 'head and shoulders' with a neckline at $1.900. Furthermore, a bearish crossover of the 50-day and 100-day moving averages is observed. The price is expected to continue declining to the 78.6% Fibonacci retracement level at $0.4470.
Amid strong competition among meme coins on the Solana platform, Popcat faces a significant drop in price and market positions. Technical analysis indicates a potential continuation of the downtrend.
