POPCAT, a Solana-based meme coin, has seen its price plummet by 16% within 24 hours, causing it to drop out of the top 100 cryptocurrencies by market cap.
Points
- POPCAT price drops by 16% in 24 hours.
- The token falls out of the top 100 cryptocurrencies by market cap.
- Market cap drops to $601.65 million.
- Decreased open interest and negative weighted sentiment indicate waning investor interest.
Meme coins were not exempt from the crypto market’s widespread drawdown in the last 24 hours. However, out of the numerous declines, Solana-based Popcat （POPCAT） has been the most affected.
Popcat Bids a Temporary Goodbye to the Prestigious List
At press time, the POPCAT price is $0.62. This value represents a 16.24% decrease within the aforementioned period. The token also fell out of the top 100 cryptocurrencies by market cap.
According to CoinGecko, the meme coin’s market cap, which previously inched close to $1 billion, is $601.65 million as of this writing. As a result, the meme coin ranks as the 102nd most valuable cryptocurrency.
However, POPCAT’s decline can also be linked to other events. Findings show that the Federal Open Market Committee’s （FOMC） decision to keep interest rates unchanged and rising tension in the Middle East contributed to the broader market correction.
Beincrypto
POPCAT Open Interest. Source: Santiment
Decreased Open Interest and Market Sentiment
Meanwhile, POPCAT has also seen a notable decrease in Open Interest （OI）, as shown above. According to Santiment, OI was almost $70 million on July 27. However, at press time, it had dropped to $44.92 million.
Open Interest measures the value of contracts open in the market. When it increases, investors are bringing more money into the market. But a decrease suggests increased position closures.
Therefore, the decline implies that market interest in the meme coin is waning. If this continues, it could strengthen the price decrease.
This sentiment is also contrary to the buzzing optimism around POPCAT a few days ago. The bullish sentiment at that time helped the price rebound.
However, on-chain data shows that it is no longer the case. At press time, the Weighted Sentiment is back in the negative region.
Beincrypto
POPCAT Weighted Sentiment. Source: Santiment
This metric uses social volume to assess market perception about a cryptocurrency. Thus, this decline suggests that negative commentary outweighs positive ones.
POPCAT Price Prediction: Correction to Continue
On the daily chart, the token continues to experience a drawdown. From this indication below, bulls do not seem prepared to halt this correction. The Relative Strength Index （RSI） also gives credence to this bias as the reading has fallen below the neutral line.
In simple terms, the RSI uses the speed and size of price changes to determine momentum. When it decreases, it means momentum is turning bearish. However, an increase suggests a bullish momentum.
The indicator also detects overbought and oversold conditions. A rating above 70.00 indicates an overbought condition, while one below 30.00 means a cryptocurrency is oversold. In POPCAT’s case, the declining momentum could strengthen the downtrend.
Beincrypto
If sustained, this could lead to the price falling below $0.60, with a potential drop to $0.51. However, traders may need to watch out, as buying pressure could change the situation. Also, if POPCAT becomes oversold, a bounce may occur. If that is the case, the price may return to $0.70.
解説
- The significant drop in POPCAT’s price and market cap highlights the volatility and speculative nature of meme coins.
- Decreased open interest and negative sentiment indicate waning investor confidence, potentially leading to further price declines.
- Technical indicators such as RSI suggest continued bearish momentum, but oversold conditions could prompt a rebound.