Solana-Based Memecoin Popcat [POPCAT] Struggles to Regain Momentum Despite Bitcoin's Surge

Solana-based memecoin Popcat [POPCAT] started October strong, nearing a new ATH of $1.5 in the first two weeks. However, a sharp weekly drop of over 10% pulled it back to the $1.20 range.

Solana-based memecoin Popcat [POPCAT] began October with a bang, quickly notching gains of over 10%. This飆漲surged it past the $1.3 price level within the first week, reaching a high of $1.5.

However, this momentum hit a roadblock in the second week as POPCAT faced a sharp drop of over 10%, pulling it back to the $1.20 range.

Bitcoin’s surge past the $66k ceiling during this period typically drives liquidity into high-cap memecoins. Yet, despite POPCAT’s $1 billion market cap, it failed to gain traction.

Now, analysts at AMBCrypto are left wondering whether this correction was a strategic shakeout of weak hands, potentially setting up POPCAT for another attempt at a new ATH.

What’s keeping POPCAT from a new ATH?

Unlike early October, when Bitcoin saw a modest 2% hike over three days, pushing it to around $62k, this volatility sparked significant interest in newer memecoins that offered greater return potential.

Among them, POPCAT stood out, posting daily gains exceeding 10% and reaching a new ATH of $1.5.

However, with Bitcoin regaining bullish momentum and now trading around $67k, traditional memecoins reasserted their dominance. By doing so, they pushed newer coins to concede defeat, as illustrated by this chart.

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

Source : Coinglass

In the past week, liquidity has flowed into older memecoins as Bitcoin holders redistributed their profits, resulting in liquidity outflows for POPCAT.

It’s also important to note that this recent decline might be a temporary blip, rather than a consistent trend in every bull cycle.

Additionally, the price drop came after a surge in whale purchases of POPCAT, which indicated that the recent decline may have been triggered as the coin hit its new high, leading weaker hands to exit the cycle.

While this shakeout might set the stage for POPCAT to achieve a new ATH by the end of this cycle, the increasing dominance of its rivals could pose a significant hurdle.

Traders seized profits from other memecoins

Typically, a local low forms after every pullback, creating an entry point for new buyers looking to capitalize on the dip to acquire assets at a discounted price.

While a neutral RSI suggested there is still room for growth, other indicators did not show promising signs that $1.30 will serve as an opportunity for POPCAT to attract fresh liquidity.

Source : TradingView

The recent 10% drop in its value coincided with a bearish MACD crossover, indicating that the pullback may continue at least until Bitcoin hits a local low. This might mean potentially shifting attention back to POPCAT from other memecoins.

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Otherwise, traders opting to capitalize on other memecoins, posting weekly gains of over 20%, might further dampen POPCAT’s ability to recover from its slump.

Therefore, careful monitoring of the memecoin market is essential. If other memecoins start to decline, it could present the right opportunity for POPCAT to attract liquidity. This will set the stage for a potential new ATH.