The craze around meme coins built on the Solana blockchain has re-emerged following the introduction of Goatseus Maximus [GOAT]. This particular digital token has garnered significant interest from cryptocurrency enthusiasts due to its remarkable performance in recent days.
Possible Cause for GOAT Price Drop
As the popularity of this memecoin continues to soar, a major crypto investor, with an unrealized profit exceeding $9 million, divested their GOAT holdings.
On October 24th, when GOAT hit its peak value, the investor took advantage of the situation and sold their assets, as per information from the blockchain transaction tracker Lookonchain.
Records show that the investor sold 9.23 million GOAT tokens valued at $7.13 million. Initially, the investor had bought 22.48 million GOAT meme coins for approximately $7.5 million at an average cost of $0.334 each.
This action is likely a contributing factor to the recent price drop of GOAT. Currently, GOAT is trading around $0.632, experiencing a drop of more than 22% in the last 24 hours.
During this period, the trading volume surged by 34%, signaling increased engagement from traders and investors. This uptick in trading activity could be reassuring for GOAT holders, indicating sustained interest even after the notable sell-off.
GOAT Technical Evaluation and Significant Levels
According to CryptoCrypto’s technical assessment, GOAT displays a bearish trend, having formed a bearish head-and-shoulders pattern in the four-hour chart.
In trading circles, this pattern often signifies a downturn signal.
Basing predictions on the current price action, if GOAT breaches the $0.60 support level and conclusively closes below it in a four-hour candle, there is a strong likelihood of a 16% decline, potentially dropping to the $0.51 mark in the foreseeable future.
Negative On-Chain Data
The pessimistic outlook for GOAT is further reinforced by on-chain data. Coinglass, an on-chain analytics company, reports that GOAT’s Long/Short ratio is at 0.928 as of now, showcasing a prevailing bearish sentiment among traders.
In addition, the open interest in GOAT surged by 99% in the last 24 hours and by 16% in the previous four hours. This growth in open interest suggests increased participation and an accumulation of more positions in contrast to the previous day.
When paired with a Long/Short ratio below 1, the rising open interest indicates a bearish trend, signifying that bears currently have the upper hand in the market.