Popcat Faces Downtrend as Smart Money Exits and Exchange Balances Surge

The price of Popcat, a meme coin on the Solana network, has experienced a significant decline of over 40% from its highest point this year. As of the latest data, Popcat is priced at $1.0342, marking its lowest level since October 24. This downturn comes as various indicators suggest increasing selling pressure on the token.

According to data from Nansen, the volume of Popcat coins on exchanges has risen by 7.7% over the past seven days, reaching over 223.94 million coins. This increase means that approximately 22.8% of the total supply of Popcat is now held on exchanges. The primary exchanges where these coins are concentrated include Bybit, Kraken, Gate, and Raydium. The rise in the number of coins available on exchanges is typically interpreted as a bearish signal, as it suggests that holders may be preparing to sell their holdings.

Furthermore, Nansen’s data shows a notable drop in the number of “smart money” investors holding Popcat. A few months ago, 85 such investors were involved with the token, but this number has now decreased to just 40. Additionally, the total balance of Popcat held by these smart money investors has diminished, from 2.196 million coins in September to 2.17 million coins at present. This decrease indicates that many of these investors are either taking profits or reallocating their capital to other cryptocurrencies.

Additional data from CoinCarp indicates that the number of Popcat holders has not seen significant growth. As of December 11, the total number of holders stood at 116,400, which represents only a slight increase from the previous day. This lack of growth in the number of holders suggests that investor interest in the token is not expanding significantly, especially as the broader cryptocurrency market has lost momentum.

These trends align with a broader decline in the market for Solana-based meme coins. The total market capitalization of these tokens has dropped from $20 billion last week to $17 billion.

Popcat Price Technical Analysis

Looking at the technical indicators for Popcat, the daily chart reveals that the price peaked at $2.07 on November 17 but has since been on a strong downtrend. The price retraced to the 50% Fibonacci Retracement level at $1.0385, and the token has now fallen below its 50-day moving average.

Additionally, the price action suggests that Popcat is forming a head-and-shoulders pattern, a technical indicator often associated with bearish market conditions. Both the MACD (Moving Average Convergence Divergence) and the Relative Strength Index (RSI) have turned negative, with the RSI dipping below neutral levels.

As a result, the outlook for Popcat appears bearish, with further declines likely. Sellers may target the psychological support level of $0.50, representing a potential drop of approximately 58% from the current price. This bearish trend would be confirmed if the price breaks below the key support level of $0.9975, which corresponds to the highest swing level seen in July.