• 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.

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.

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Author: Vivaan Acharya