- This bearish thesis will only hold if it closes a daily candle below the $0.70 level.
- On-chain metric revealed that exchanges have witnessed an inflow of nearly $1 million worth of POPCAT.
Popcat [POPCAT], is poised to continue its downside momentum due to the formation of bearish price action.
The overall cryptocurrency market is struggling following yesterday’s price crash, and in this environment, POPCAT was hit hard, witnessing a price decline of over 22%, in a day. It failed to hold a crucial support level.
POPCAT technical analysis and key levels
Based on AMBCrypto’s technical analysis, POPCAT has broken down from a prolonged consolidation zone between the $0.70 and $0.83 marks, which it had formed at the crucial support level of $0.70.
Following this breakdown, the memecoin’s daily chart indicates significant downside momentum in the future.
Source: TradingView
POPCAT’s price prediction
At the time of writing, the memecoin was trading below the lower level of the consolidation zone.
Based on the recent price action, if the memecoin closes its daily candle below the $0.70 mark, there is a strong possibility it could drop by another 42% to reach its next support level at the $0.38 mark.
In addition to this, POPCAT is trading below the 200 Exponential Moving Average (EMA) on the daily time frame, which clearly shows that the memecoin has shifted to a downtrend and is now bearish.
POPCAT’s bearish thesis will only hold if it closes a daily candle below the $0.70 level, otherwise, it may fail.
Analyzing exchanges inflows
This breakdown and the POPCAT market sentiment have created fear among long-term holders, prompting them to dump their holdings onto exchanges, as reported by the on-chain analytics firm Coinglass.
Data from Spot Inflow/Outflow revealed that exchanges have witnessed an inflow of nearly $1 million worth of POPCAT.
Source: Coinglass
In the cryptocurrency landscape, inflow refers to the movement of assets from long-term holders’ wallets to exchanges, indicating selling pressure. This data further suggests a potential price decline and more sell-offs.
With this metric and technical analysis, it appears that bears are currently dominating the asset, which could support further price declines in the coming days.
Read Popcat’s [POPCAT] Price Prediction 2024–2025
At the time of writing, POPCAT was trading near $0.65 and has experienced a price decline of over 18% in the past 24 hours.
However, during the same period, its trading volume jumped by 21%, indicating heightened participation from traders and investors amid a bearish outlook.
