Popcat, a meme coin on the Solana network, has skyrocketed by over 4,400% in 2024, but is now witnessing a decline in market share as the value of its token falls.

Popcat (POPCAT) has seen its price drop by more than 62% from its peak earlier this year, reducing its market capitalization to $762 million. It has slipped from the position of the second-largest Solana meme coin to sixth place, having been surpassed by Pudgy Penguins, Dogwifhat, Fartcoin, and ai16z.

The recent downturn in Popcat’s price is attributed to smart money investors offloading their assets. Data from Nansen indicates that the number of these smart investors has declined from over 70 to just 30. Additionally, the amount of tokens in their possession has decreased from 2.10 billion in May to 2.07 billion now.

Furthermore, there are indications that the number of Popcat tokens available on exchanges has been increasing, which suggests that investors are selling. The amount of tokens on exchanges has risen by 2.77% in the past week, reaching over 248.32 million.

A potential reason for this significant drop is the vibrant atmosphere in the Solana meme coin sector, where new tokens frequently gain popularity. Recently, Pudgy Penguins emerged as the second-largest Solana meme coin, joining the ranks alongside earlier entries like Peanut the Squirrel, Goatseus Maximus, and Moo Deng.

Popcat’s Price Exhibiting Bearish Trends

The daily chart indicates that the POPCAT token has established several bearish patterns, signaling further potential declines. It has formed a head-and-shoulders pattern with a neckline positioned at $1.900, which it fell below on December 14.

Concurrently, the 50-day and 100-day moving averages have created a bearish crossover, often referred to as a mini-death cross.

Popcat’s price has also formed a bearish pennant pattern, characterized by a lengthy vertical line and a symmetrical triangle formation. This pattern typically signals a continuation of a bearish trend.

Currently, Popcat has retraced to the 61.8% level, indicating a bearish outlook, with a key target to monitor at the 78.6% retracement level of $0.4470, representing a decline of around 42% from its current position.