Popcat, a Solana meme coin that has soared by over 4,400% in 2024, is losing market share as its token plunges.
Popcat (POPCAT) price has plunged by over 62% from its highest level this year, pushing its market cap to $762 million. It has moved from being the second-biggest Solana meme coin into the sixth after being passed by Pudgy Penguins, Dogwifhat, Fartcoin, and ai16z.
Popcat price has crashed as smart money investors continued selling their holdings. According to Nansen, the number of smart money investors holding the token has dropped from over 70 to 30. Tokens held by these investors have also moved from 2.10 billion in May to 2.07 billion today.
There are also signs that the number of Popcat tokens on exchanges has continued rising, a sign that investors are selling. These tokens have risen by 2.77% in the last seven days to over 248.32 million.
A likely reason for this plunge is that the Solana meme coin industry has been very vibrant, with new tokens regularly going viral. The most recent of them was Pudgy Penguins, which has become the second-biggest Solana meme coin. Before that, there was Peanut the Squirrel, Goatseus Maximus, and Moo Deng.
Popcat price has formed bearish patterns
The daily chart shows that the POPCAT token has formed numerous bearish patterns, pointing to further drops. It formed a head-and-shoulders pattern with a neckline at $1.900, which it moved below on December 14.
The 50-day and 100-day moving averages have formed a bearish crossover, which is often seen as a mini-death cross.
Popcat price has also formed a bearish pennant pattern that is made of a long vertical line and a symmetrical triangle pattern. This pattern usually leads to a bearish continuation.
Popcat has also moved to the 61.8% retracement level. Therefore, the token’s outlook is bearish, with the next target to watch being at the 78.6% retracement point at $0.4470, which is about 42% below the current level.
