As alternative cryptocurrencies have been on a downward spiral in the past day, meme coins have also taken a hit. One of the most affected is Popcat [POPCAT], a memecoin based on Solana [SOL].
Popcat has witnessed a decline over the last three days.
Starting from a peak of $1.6, Popcat has been under consistent selling pressure, dropping to a low of $0.98.
As of now, Popcat is trading at $1.17 following a 16.40% drop on a daily basis. Furthermore, the memecoin has seen declines on weekly and monthly charts, falling by 8.53% and 18.62% respectively.
Given the significant downward pressure, there is a possibility that the memecoin might face further declines in the current market conditions.
Popcat Confronts Selling Pressure
According to an analysis by CryptoCrypto, Popcat is currently grappling with notable selling pressure and an increased bearish sentiment at the moment.
Popcat recently witnessed a bearish crossover on its Relative Strength Index (RSI) within the last 24 hours. This bearish indication is a result of continuous selling pressure from investors looking to sell off assets to mitigate losses.
Considering the dominance of sellers in the market, it indicates a lack of trust in the market and an expectation of further price declines.
Moreover, it is evident that a majority of investors are opting for short positions. Based on the Long/Short Ratio, short investors hold 52% of the total positions in the market.
This suggests a prevailing bearish sentiment among traders who anticipate a decline in prices.
Furthermore, Popcat’s Open Interest per Exchange dropped from $119.9 million to $74.5 million over the past three days.
This decline indicates existing investors closing their positions to prevent more losses, while potential new entrants are hesitant to join the market.
With total liquidations for long positions reaching $6 million in the last day and investors being compelled out of their positions by the market, a pessimistic outlook remains prevalent among most investors.
Considering the mounting selling pressure, Popcat could see further price decreases in the immediate future.
If this bearish sentiment persists, the price of Popcat may drop to a two-month low of $0.90. A breach below this level could result in the memecoin falling to $0.86. Conversely, a reversal in trend might lead to the memecoin rebounding to $1.3.