Popcat price forms risky pattern as Solana meme coin loses share

Solana meme coin Popcat, which is up over 4,400% in 2024, is losing market share as its token declines.

Popcat (POPCAT) price has fallen over 62% from this year’s high, pushing its market cap to $762 million. Pudgy Penguins has moved from being the second largest Solana meme coin to the sixth spot after being surpassed by Dogwifhat, Fartcoin, and ai16z.

Popcat price has fallen as smart money investors continue to sell their holdings. According to Nansen, the number of smart money investors holding the token dropped from over 70 to 30. The tokens held by these investors also increased from 2.10 billion in May to 2.07 billion today.

Popcat smart money investors | Source: Nansen

There are also signs that the number of Popcat tokens on exchanges continues to increase; This is a sign that investors are selling. These tokens have increased by 2.77% to over 248.32 million in the last seven days.

One possible reason for this decline is that the Solana meme coin industry is very vibrant and new tokens go viral on a regular basis. The most recent of these was Pudgy Penguins, which became Solana’s second biggest meme money. Before him there was Squirrel Peanut, Goat Maximus and Moo Deng.

Popcat price has formed a downtrend Popcat price chart | Source: crypto.news

The daily chart shows that the POPCAT token has formed multiple downtrends, indicating further declines. It formed a head-and-shoulders formation with a neckline at $1,900 and broke below that level on December 14.

The 50-day and 100-day moving averages have formed a bearish crossover, often seen as a mini-death crossover.

Popcat price also formed a bearish pennant formation consisting of a long vertical line and symmetrical triangle formation. This formation usually leads to a continuation of the downtrend.

Popcat also moved to the 61.8% retracement level. Therefore, the token’s outlook is bearish and the next target to watch is at the 78.6% retracement point of $0.4470, which is approximately 42% below the current level.