The meme coin POPCAT, which is based on the Solana network, has been attracting a lot of attention from the crypto community recently. However, it seems like the coin is heading towards a significant price decline as it shows bearish signs on the daily chart.
According to technical analysis conducted by CoinPedia, POPCAT is forming a bearish Head-and-Shoulder pattern on its daily chart. The recent price drop of 7.5% has set the stage for the first shoulder of the pattern. If the coin continues to decline and reaches the $1.2 level, the pattern will be confirmed. The neckline of the pattern is at $1.15, and if POPCAT breaks below this level and closes a daily candle, it could possibly drop by more than 20% in the near future. However, this bearish scenario will only hold true if the coin closes below $1.15.
On-chain metrics also support the negative outlook for POPCAT. The Long/Short ratio is currently at 0.92, indicating bearish sentiment among traders. Additionally, open interest in the coin has decreased by 7.9% in the last 24 hours and 3.5% in the past four hours. This decline in open interest suggests that traders are either exiting their positions or facing potential liquidation due to the price decline.
As of now, POPCAT is trading around $1.28, with a 7% drop in price in the last 24 hours. The trading volume has also decreased by 40% during the same period, indicating reduced participation from investors and traders. It seems like bears are currently in control of the asset and could continue to drive the price lower in the coming days.
In conclusion, POPCAT’s price action and on-chain metrics point towards a bearish trend in the near future. Traders and investors should proceed with caution and closely monitor the coin’s price movement to make informed decisions.