The price can be reduced by 15%, here’s why.
The popular Solana-based meme coin Popcat (POPCAT) is set for a price drop following a winning pattern and popular selling pressure on the daily chart. This bearish pattern is seen if the major cryptocurrencies are experiencing significant price increases and reversals.
POPCAT latest performance
POPCAT has received a lot of attention from traders and investors in the last few days with a dramatic price increase of more than 100%. However, the sentiment has changed to a downward trend.
At press time, Meme Coin is trading near $0.95 and has experienced a price drop of over 10% in the last 24 hours. During the same period, POPCAT's trading volume fell by 19%, indicating low trader participation, possibly due to fear of falling prices.
POPCAT technical analysis and upcoming levels
According to expert technical analysis, POPCAT looks bearish as it has breached the low of the last two days with a big red candle at the $1 resistance level. The formation of such a candle close to resistance indicates a bearish signal and selling pressure.
Based on the historical price movement, there is a high probability that POPCAT will drop by 15% in the coming days if Meme Coin closes its daily candle below $0.95.
Bearish On-Chain Indicators
However, this pessimism is further supported by chain metrics such as the long/short ratio and futures open interest. According to on-chain analytics firm Coinglass, POPCAT's long/short ratio is currently at 0.933, indicating bearishness among traders.
Additionally, the futures open interest has decreased by 7.5% in the last 24 hours and is steadily declining. This fall in open interest indicates that large long positions have been liquidated due to the sharp decline in prices over the past 24 hours. Currently, 51.72% of top traders hold short positions and 48.28% hold short positions.
