The recent performance of POPCAT, a meme coin based on Solana, indicates a possibility of a significant price drop, as both its daily chart and on-chain indicators are showing bearish signals. Despite a recent surge of over 100%, it seems that profit-taking activities by traders and investors are causing a shift towards a bearish trend.
Price Momentum of POPCAT
Currently, POPCAT is trading at approximately $0.91, experiencing an 8% price decrease over the last 24 hours. Moreover, its trading volume has decreased by 20% during the same period, indicating apprehensions regarding a potential further price decline in the near future.
Technical Analysis and Critical Levels
Analysis from CryptoCrypto suggests that POPCAT is displaying bearish tendencies following a recent breakdown from a two-day consolidation phase at the $1 resistance level, marked by a significant red candle. In technical terms, a breakout below a resistance level during consolidation typically signals a bearish trend.
Considering the recent price movements, there is a high likelihood that POPCAT’s price might see a 15% reduction, potentially reaching the $0.78 level in the upcoming days. Nevertheless, the Relative Strength Index (RSI) of the meme coin is currently in an overbought region, hinting at a probable reversal in price direction.
Bearish On-Chain Indicators
Complementing the price analysis, on-chain metrics for POPCAT further reinforce the bearish outlook. As per data from Coinglass, the long/short ratio for POPCAT stands at 0.91 – the lowest figure since September 2024, indicating a prevailing bearish sentiment among traders.
Additionally, the Futures Open Interest for POPCAT has remained constant over the past 24 hours, pointing towards a lack of new positions being opened or closed. This stability represents a neutral stance regarding the popular meme coin.
Currently, 52.16% of prominent traders have taken short positions, while 47.84% have opted for long positions. With these on-chain metrics and technical assessments aligning towards a bearish scenario, it is likely that further price declines could be witnessed in the forthcoming days.