Popular Solana-based meme coin POPCAT is expected to decline in price following a bearish pattern and notable selling pressure seen on the daily chart. This bearish pattern occurs when a major cryptocurrency experiences a notable price surge and upward momentum.
Popcat’s recent performance
POPCAT has received a lot of attention from traders and investors with an impressive price surge of over 100% in the past few days. However, sentiment has potentially turned to the downside.
As of press time, Meme Coin is trading near $0.95 and has experienced a price drop of more than 10% in the past 24 hours. During the same period, Popcat’s trading volume fell 19%, potentially indicating a decline in trader participation due to fears of a price collapse.
POPCAT technical analysis and future levels
According to expert technical analysis, POPCAT looks bearish as it has broken the lows of the last two days with a large red candle at the $1 resistance level. The formation of these candles near resistance signals a bearish signal and potential selling pressure.
Based on historical price momentum, if MEM Coin closes its daily candle below the $0.95 level, it is likely that POPCAT will decline by 15% to reach the $0.80 level in the coming days.
Bearish On-Chain Indicators
However, this negative outlook is further supported by on-chain indicators such as long/short ratios and future open interest. According to Coinglass, an on-chain analytics company, Popcat’s long/short ratio is currently at 0.933, indicating bearish sentiment among traders.
Additionally, future open interest has decreased by 7.5% in the last 24 hours and has been steadily decreasing. This decrease in open interest indicates that higher long positions were liquidated due to the massive price decline over the last 24 hours. Currently, 51.72% of top traders have short positions, while 48.28% have short positions.