POPCAT Drops 10% on Lack of Liquidity – ATH Possible?

  • POPCAT has fallen more than 10% in the past week, leading to a healthy exodus of weak investors.

  • However, a significant barrier continues to act as resistance on the chart.

Solana-based memecoin Popcat [POPCAT] started October with strength, approaching a new ATH of $1.50 in the first two weeks. However, a sharp weekly drop of over 10% has pulled it back to around $1.20.

Surprisingly, this decline coincided with Bitcoin breaking above $66,000, a move that typically shifts liquidity into large-cap memecoins. Despite POPCAT’s $1 billion market cap, it has failed to attract attention.

Therefore, analysts at TinTucBitcoin are questioning whether this correction is a deliberate strategy to weed out weak investors, in preparation for a new ATH attempt by POPCAT.

This factor could prevent POPCAT from reaching a new ATH

Unlike early October, when Bitcoin saw a modest 2% gain in three days, pushing the price to around $62,000, this volatility has sparked significant interest in newer memecoins, which offer higher profit potential.

Among these, POPCAT stands out, achieving a daily gain of over 10% and hitting a new ATH of $1.5.

However, as Bitcoin regained bullish momentum and is currently trading around $67,000, traditional memecoins have asserted their dominance, leaving the newcomers to take the backseat, as shown by this chart.

A drop in trading volume further reinforced this trend, falling from a peak of $800 million to $500 million – contributing to POPCAT’s recent 10% drop.

POPCAT volume

Source: Coinglass

Over the past week, liquidity has flowed into older memecoins as Bitcoin holders reallocate their profits, leading to capital outflows from POPCAT.

However, it is important to note that the recent decline may just be a temporary phenomenon, rather than a consistent trend throughout each bull cycle.

Furthermore, the price drop came after a surge in POPCAT whale purchases, suggesting that the recent drop may have been triggered by the coin hitting new highs, leading to weak investors exiting the cycle.

While this shock could be the launch pad for POPCAT to reach a new ATH by the end of this cycle, the growing dominance of rival coins could pose a significant obstacle.

Traders have taken profits from other memecoins

Typically, a local bottom will form after each pullback, creating an entry point for new buyers looking to take advantage of the dip to purchase the asset at a low price.

While the neutral RSI indicator suggests there is still room for growth, other indicators do not show positive signs that $1.30 will be an opportunity for POPCAT to attract new liquidity.

price chart

Source: TradingView

POPCAT’s recent 10% drop coincided with a negative MACD crossover, suggesting that this pullback could continue at least until Bitcoin reaches a local bottom. This could mean a shift of attention back to POPCAT from other memecoins.

Conversely, investors choosing to take profits from other memecoins, which are posting weekly gains exceeding 20%, could further undermine POPCAT's ability to recover from its bearish momentum.

Therefore, it is essential to keep a close eye on the memecoin market. If other memecoins start to fall, this could create a suitable opportunity for POPCAT to attract liquidity, setting the stage for a potential new ATH.


#tintucbitcoin #Write2Win #MarketDownturn #IntroToCopytrading #BinanceTurns7 $PEPE