The resurgence of meme coins built on the Solana network has been reignited following the debut of Goatseus Maximus [GOAT]. This particular meme coin has captured considerable interest from cryptocurrency enthusiasts owing to its strong performance in recent days.
Possible Cause for Declining GOAT Prices
With the ongoing surge in this memecoin’s value, a large cryptocurrency whale decided to capitalize on their unrealized gains by selling off their GOAT holdings.
On October 24th, when GOAT hit its peak, this whale took the opportunity to unload a portion of their assets, as indicated by data from the blockchain transaction tracking service, Lookonchain.
Information reveals that the whale divested 9.23 million GOAT tokens valued at $7.13 million. Initially acquiring 22.48 million GOAT meme coins for nearly $7.5 million at an average price of $0.334, this sell-off likely contributed to the recent drop in GOAT’s price. As of now, GOAT is trading around $0.632 and has seen a decline of more than 22% in the past 24 hours.
Simultaneously, trading volume surged by 34%, signaling increased engagement from traders and investors. This uptick in trading activity bodes well for GOAT holders, showcasing ongoing interest despite the significant sell-off.
Technical Evaluation and Key Levels for GOAT
As per CryptoCrypto’s analysis, the technical outlook for GOAT appears bearish, with a bearish head-and-shoulders pattern forming on the four-hour timeframe—an often recognized indicator of a potential sell-off.
Based on price action, breaching the $0.60 neckline and closing a four-hour candle below it may indicate a possible 16% decline for GOAT, potentially falling to $0.51 in the near term.
Negative On-Chain Metrics Fuel Bearish Sentiment
Further reinforcing GOAT’s bleak prospects are on-chain metrics. Coinglass, an on-chain analytics company, reports a Long/Short ratio of 0.928 for GOAT currently, reflecting a strong bearish sentiment among traders.
Moreover, open interest in GOAT has surged by 99% in the last 24 hours and 16% in the past four hours, indicating heightened participation and an increase in positions compared to the previous day. This combination of rising open interest and a Long/Short ratio below 1 signals a bearish scenario, with bears evidently having the upper hand over the asset.