Popcat’s Price Forms Risky Pattern as Solana Meme Coin Loses Market Share

Popcat, a meme coin based on Solana, has experienced a dramatic surge of over 4,400% in 2024, but it is now facing a significant downturn. The price of Popcat has dropped by over 62% from its peak, pushing its market capitalization down to $762 million. As a result, Popcat has fallen from being the second-largest Solana meme coin to the sixth, surpassed by tokens like Pudgy Penguins, Dogwifhat, Fartcoin, and ai16z.

A major factor behind this price drop is the reduced interest from “smart money” investors. According to data from Nansen, the number of smart money investors holding Popcat has decreased significantly, from over 70 to 30. Additionally, the number of tokens held by these investors has slightly declined from 2.10 billion in May to 2.07 billion now.

Another concerning indicator is the increase in Popcat tokens on exchanges, which typically signals that investors are looking to sell. The number of tokens on exchanges has risen by 2.77% in the past week, now exceeding 248.32 million.

Popcat’s price drop may also be attributed to the growing vibrancy of the Solana meme coin sector, with new tokens regularly gaining attention. The most recent success story is Pudgy Penguins, which has overtaken Popcat to become the second-largest Solana meme coin. Other recent viral tokens include Peanut the Squirrel, Goatseus Maximus, and Moo Deng, further diluting Popcat’s market share.

On the technical side, Popcat’s chart shows multiple bearish patterns. The formation of a head-and-shoulders pattern, with a neckline at $1.90, was broken on December 14, signaling further declines. Additionally, the 50-day and 100-day moving averages have crossed, forming what’s known as a “mini-death cross,” a typically bearish signal.

Popcat has also formed a bearish pennant pattern, characterized by a long vertical line followed by a symmetrical triangle. This pattern is often seen as an indicator of a continuation of the downward trend. Furthermore, Popcat has reached the 61.8% Fibonacci retracement level, which is often a sign of potential further declines. The next target for Popcat is the 78.6% retracement level at $0.4470, which is about 42% lower than its current price.

Overall, the outlook for Popcat is bearish, and unless there is a significant change in investor sentiment or external factors that boost the meme coin’s popularity, further price declines are expected. The competition within the Solana meme coin space is fierce, and Popcat will need to regain momentum or risk losing its position further.