Popcat, a meme coin on the Solana blockchain that surged over 4,400% in 2024, is now losing market presence as its token value declines.
Currently, 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 price decline of Popcat is largely due to smart money investors offloading their holdings. According to data from Nansen, the count of these investors has decreased from over 70 to just 30. Additionally, the total amount of tokens they hold has decreased from 2.10 billion in May to 2.07 billion today.
There are indications that the quantity of Popcat tokens available on exchanges is continuing to rise, suggesting increased selling activity among investors. Over the past week, the number of tokens on exchanges has increased by 2.77%, exceeding 248.32 million.
A probable cause for this downturn is the highly dynamic nature of the Solana meme coin market, with new tokens frequently gaining traction. The latest entry to make waves is Pudgy Penguins, which has ascended to become the second-largest meme coin on Solana. Prior to that, tokens like Peanut the Squirrel, Goatseus Maximus, and Moo Deng gained popularity.
Bearish Patterns Formed in Popcat Price Action
The daily chart indicates that the POPCAT token has established several bearish patterns that suggest further declines may occur. Notably, it has formed a head-and-shoulders pattern with a neckline at $1.900, a level it fell below on December 14.
The crossing of the 50-day and 100-day moving averages indicates a bearish crossover, often interpreted as a mini-death cross.
Additively, the price has formed a bearish pennant pattern characterized by a prominent vertical line and a symmetrical triangle, which typically indicates a continuation of the bearish trend.
The token has also reached the 61.8% Fibonacci retracement level, which suggests a bearish outlook. The next target to monitor is the 78.6% retracement level at $0.4470, signifying a potential decline of approximately 42% from the current value.
