Meme coins were not exempted, as the crypto market experienced a widespread drawdown in the last 24 hours. However, out of the numerous declines, Solana-based Popcat (POPCAT) has been the most affected.
At press time, the POPCAT price is $0.62. This value represents a 16.24% decrease within the abovementioned period; however, there is more.
Popcat Bids a Temporary Goodbye to the Prestigious List
A look at the broader market shows that many meme coin prices dropped by double-digits. However, the price drop is not the sole reason POPCAT is in the spotlight because of the price drop. The token also fell out of the top 100 regarding 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.
Read More: How to Buy Solana Meme Coins: A Step-By-Step Guide
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.
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.
Read More: 11 Top Solana Meme Coins to Watch in August 2024
If sustained, this could lead to the price below $0.60, which it aims to 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.
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