Why POPCAT could not hold on to its 79% November gains

POPCAT had a bearish structure on the daily chart.
Its bearish social media engagement stemmed from a relative weakness during a bullish market phase.

As a seasoned crypto investor with a knack for spotting trends and patterns, I must admit that the recent performance of POPCAT [POPCAT] has left me scratching my furry cat-themed sock. The token’s 79.7% rally from November lows to $2.08 was a promising start, but the subsequent retracement almost entirely erased those gains.

In a recent development, Popcat (POPCAT) experienced a significant surge, rallying by 79.7% from its November lows to reach $2.08. However, contrary to expectations for a minor pullback before another upward move, Popcat has almost completely reversed these gains.

During the period from November 22nd to November 26th, Bitcoin (BTC) experienced a decrease of approximately 8.83%. This decline added to the losses that Popcat had already incurred.

As a researcher, I observed an upward surge of Bitcoin, attempting to surpass the local resistance at $98k yet again. On the other hand, my analysis shows that the Popcat’s price bulls have so far failed to push through the $1.4 barrier.

Technical analysis highlights POPCAT weakness

On the daily timeframe, POPCAT had a firmly bearish structure.

In mid-November, when the token reached approximately $1.65, it didn’t hold its ground against further drops, and the Fibonacci retracement points were subsequently taken over by the bears.

Currently, the $1.35 level, marking a 78.6% price drop, has been acting as a barrier on smaller time scales, preventing further price increases.

In simpler terms, the Relative Strength Index (RSI) indicates that the downward trend has been more prominent, suggesting a bearish market condition. On the other hand, the On-Balance Volume (OBV) has experienced a significant decrease over the past ten days, indicating increased selling activity and reduced buying strength.

Among the top eight meme coins ranked by market cap, Popcat (POPCAT) stands out as the only one with a decrease in value over the last 30 days. Dogecoin (DOGE) currently has the highest return, while Dogwifhat (WIF) has the lowest.

DOGE has rallied 152% since the daily open of the 30th of October, while WIF has gained 24.87%.

Compared to others, the POPCAT token dropped by 23.28%, which wasn’t a positive sight for this feline-themed Solana token. This downturn suggests that it struggled while other market players showed strength during a bullish period.

Sentiment turns negative after a brief respite

An analysis of the optimism levels in POPCAT and PEPE revealed that PEPE supporters tended to be slightly more optimistic, leaning towards a bullish stance.

Over the last month, PEPE has seen a significant increase of 112%, and even the recent dip in its price hasn’t dampened its upward momentum.

On the 29th of November, PEPE’s social influence was significantly greater by a factor of 20, and the overall mood conveyed was one of optimism.

Popcat’s enthusiasm shifted positively a few days back, however, it swiftly changed negatively again as the price kept dropping.

A study on Popcat whale addresses has revealed a gradual decrease in the number of addresses holding over 100,000 POPCAT tokens since late September.

Realistic or not, here’s POPCAT’s market cap in BTC’s terms

The 10M+ cohort saw an increase in recent weeks, as did the 10k-100k holding cohort.

Over the last few weeks, there’s been an increase in the number of smaller marine life such as shrimp, fish, and sharks in containers with less than 10k POPCAT. Additionally, the distribution of whales during the past 4-6 weeks has raised some concerns.

2024-12-01 11:35

Technical analysis highlights POPCAT weakness

Sentiment turns negative after a brief respite

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