It seems likely that Popcat [POPCAT] could continue its downward trend due to the emergence of negative price movements.
The cryptocurrency market as a whole is facing challenges in the aftermath of yesterday’s price crash, and in this context, POPCAT has been particularly impacted, experiencing a significant price drop of more than 22% in a single day. It struggled to maintain a critical support level.
Evaluation of POPCAT’s Technical Analysis and Crucial Levels
According to CryptoCrypto’s technical analysis, POPCAT has broken below a long-standing consolidation range between the $0.70 and $0.83 levels that it had established around the pivotal support level of $0.70.
As a result of this breakdown, the daily chart of this memecoin indicates a notable downward trend in the days ahead.
Forecast for POPCAT’s Price Movement
As of now, the memecoin is trading beneath the lower boundary of the consolidation range.
Considering recent price actions, if the memecoin concludes the daily trading session below the $0.70 threshold, there is a high likelihood that its value could decline by approximately 42% to reach the subsequent support level at $0.38.
In addition, POPCAT is currently trading under the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a clear shift to a bearish trend.
The bearish outlook for POPCAT will remain valid only if it completes a daily trading session below the $0.70 level; otherwise, this prediction might not materialize.
Analysis of Exchange Inflows
This drop in price and prevailing sentiment surrounding POPCAT has instilled fear among long-term holders, leading them to offload their assets on exchanges, as highlighted by the analytics firm Coinglass.
Data from Spot Inflow/Outflow indicates that exchanges have seen an inflow of approximately $1 million worth of POPCAT.
Within the cryptocurrency realm, inflows involve the transfer of assets from long-term holders’ wallets to exchanges, indicating a selling trend. This data suggests a potential decrease in value and more instances of selling off.
Considering this data and technical analysis, it is evident that bears are currently dominating the market for this asset, potentially paving the way for further price drops in the near future.
At present, POPCAT is trading around $0.65 and has witnessed a price decline exceeding 18% within the past 24 hours.
Nevertheless, during the same timeframe, its trading volume surged by 21%, signaling increased engagement from traders and investors amidst a negative market sentiment.