Analysts from Santiment suggest that a Solana-based memecoin might be on the verge of correcting after reaching an all-time high last weekend. The coin in question is Popcat (POPCAT), which garnered sudden mainstream media attention following its price surge from $0.469 to $0.987 between July 11 and last weekend. According to Santiment, it’s now time for a correction.
Time for Popcat to Correct
“Historically, this level of interest in a price surge often leads to corrections, creating better entry points,” states Santiment’s clear conclusion.
The “large crowd” in the memecoin world has flocked to POPCAT. Usually, this is a sign that a coin is at or near its peak price.
With memecoins, it’s particularly risky to buy more at this stage because fundamentally, there’s little to no substance behind these projects. They’re driven purely by a meme (joke) that’s temporarily popular.
We saw a similar trend recently with memecoins based on former U.S. presidential candidates Jeo Boden and Doland Tremp. These coins briefly attract attention, shoot up in value, then quickly fade away and start to decline.
Has the Correction Already Started?
The correction might have already begun. Popcat is currently trading at $0.802, down nearly 20% from its peak just below $1.
Regarding Bitcoin, Santiment analysts note that bearish voices on social media have suddenly quieted. Earlier this month, there was talk of a new bear market beginning, but now optimism is creeping back in.
Interestingly, even the bulls have become quieter as Bitcoin approaches $70,000. This suggests we are in a zone where no one is sure what Bitcoin’s next move will be.
Both camps lack strong conviction at the moment, and the market seems to be waiting for the next major catalyst.