Popcat price slips as smart money sells, exchange balances rise

The Popcat price has fallen over 40% from this year’s high as signs of increasing selling pressure emerge.

Popcat (POPCAT), the third-largest meme coin on the Solana (SOL) network, fell to $1.0342, its lowest level since October 24.

Data from Nansen shows that Popcat coin volume on exchanges increased by 7.7% over the last seven days to over 223.94 million. This increase brings the total supply on the exchanges to around 22.8%. Most of these coins are held on exchanges such as Bybit, Kraken, Gate and Raydium.

An increase in the number of coins on exchanges is often considered a bearish signal for a cryptocurrency, as it indicates that holders are preparing to sell.

Other Nansen data reveals that the number of smart money investors holding Popcat has dropped significantly from 85 a few months ago to 40 today.

Popcat Smart Money Assets | Source: Nansen

Total balances held by these smart money investors have fallen from 2.196 million in September to 2.17 million currently; This suggests that many savvy investors are taking profits or reallocating them to other cryptocurrencies.

Additional data shows that the number of Popcat owners is not increasing. According to CoinCarp, there were 116,400 holders on December 11; this was a small increase from the day before.

These actions come as traders adopt a wait-and-see approach as cryptocurrency prices lose momentum. Most of the Solana meme coins have crashed, with the market cap of these tokens falling from $20 billion to $17 billion last week.

Popcat price technical analysis Popcat price chart | Source: crypto.news

The daily chart shows that Popcat price rose as high as $2.07 on November 17 before starting a strong sell-off. It dropped the 50% Fibonacci Retracement level to $1.0385 and retested it.

Popcat also fell below the 50-day moving average. In particular, the price action shows the formation of a head-and-shoulders formation, a widely recognized bearish indicator.

The MACD and Relative Strength Index have trended downwards and moved below neutral levels.

As a result, the token could continue to fall, with sellers potentially targeting the psychological level of $0.50, a drop of around 58% from the current price. This bearish view will be confirmed if the price breaks below the key support at $0.9975, the high of the July swing high.