Popcat, a prominent meme coin on the Solana blockchain that saw a meteoric rise of over 4,400% in 2024, is now witnessing a significant decline in its market standing as its valuation continues to drop sharply. As of now, Popcat’s value has descended more than 62% from its peak earlier this year, bringing its market capitalization down to approximately $762 million. The meme coin, once the second-largest on the Solana network, has dropped to sixth place, overshadowed by new entrants like Pudgy Penguins, Dogwifhat, Fartcoin, and ai16z.
This downturn is attributed to a growing sell-off by ‘smart money’ investors, a term used for those with a track record of profitable investments. Data from blockchain analytics firm Nansen reveals a decrease in these investors, from over 70 individuals to just 30. The total number of tokens held by these investors also slightly decreased from 2.10 billion in May to 2.07 billion.
Additionally, there has been a noticeable increase in the volume of Popcat tokens appearing on exchanges, indicating an ongoing sell-off. The quantity of these tokens has risen by 2.77% over the past week alone, now exceeding 248.32 million.
The decline of Popcat coincides with a vibrant phase for the Solana meme coin market, where new tokens are frequently attracting investor attention. Recently, Pudgy Penguins has emerged as a major player, outranking Popcat as the second-largest meme coin in the ecosystem. Other coins like Peanut the Squirrel, Goatseus Maximus, and Moo Deng have also made noticeable impacts.
On the technical front, Popcat’s price chart reveals several bearish patterns. It has breached a significant head-and-shoulders formation, breaking below the neckline set at $1.900 on December 14. Moreover, a bearish crossover between the 50-day and 100-day moving averages has been observed, suggesting potential further declines. The appearance of a bearish pennant pattern, characterized by a vertical drop followed by consolidation within a symmetrical triangle, signals a likely continuation of the downward trend. Currently, Popcat has reached the 61.8% Fibonacci retracement level, with projections for a further decline towards the 78.6% level, targeting approximately $0.4470, marking an additional 42% decline from current prices.
