Deep Dive
1. Manipulation Fallout (Bearish Impact)
Overview:
A November 12 market manipulation event involving BTX Capital triggered $63M liquidations and a 43% single-day crash. While the attack occurred three weeks ago, its psychological impact persists, with POPCAT still down 61% since the incident.
What this means:
- Traders remain wary of low-liquidity assets like POPCAT after Hyperliquid’s protocol absorbed $4.9M in losses
- Repeated manipulation allegations (now under SEC/CFTC scrutiny) deter new capital
What to look out for:
Regulatory actions against BTX Capital or Hyperliquid – decisive penalties could restore confidence.
2. Technical Downtrend (Bearish)
Overview:
POPCAT trades below all key moving averages:
- 7-day SMA: $0.1045 (resistance)
- 30-day SMA: $0.1140 (-16% vs current $0.0977)
- RSI-14: 43.64 (neutral but trending downward)
What this means:
- Bearish momentum confirmed by the death cross (50-day EMA below 200-day EMA)
- Next support at November’s swing low ($0.0843) – a break could trigger panic selling
3. Meme Coin Liquidity Drain (Mixed Impact)
Overview:
Bitcoin dominance hit 58.63% (yearly high), signaling capital rotation away from altcoins. Solana meme coins like POPCAT face double pressure:
- Market-wide risk-off sentiment (Fear & Greed Index: 25/100)
- Spot volume decline – POPCAT’s 24h volume fell 16% to $20.75M
What this means:
- Meme coins typically underperform in “Bitcoin Season” due to speculative nature
- High turnover ratio (0.217) implies thin order books amplify price swings
Conclusion
POPCAT’s decline reflects a toxic mix of sector-wide risk aversion, unresolved manipulation risks, and broken technical support. While oversold conditions could spark a bounce, the lack of fundamental catalysts and persistent regulatory overhang favor caution.
Key watch: Can POPCAT hold $0.0843 (November low)? A breach may accelerate losses toward the 2025 low of $0.0668.