Popcat, a top Solana meme coin, re-entered a bear market, falling by over 22% from its highest point this week. 

The Popcat (POPCAT) token dropped to a low of $0.6098, its lowest level since Aug. 23, erasing most of the gains made earlier this month. This retreat gave it a market cap of over $608 million.

Popcat’s futures open interest is stable

Earlier this month, Popcat rose for seven consecutive days after Binance listed its futures, allowing users to trade it with up to 75x leverage. More exchanges like KuCoin Futures and OKX also listed Popcat’s futures this week.

Cryptocurrencies tend to rise sharply after being listed by top tier-1 exchanges and then pull back as the hype retreats.

These listings explain why Popcat’s futures open interest has been relatively stable this week. It stood at $50.63 million on Friday, Aug. 30, with most of it coming from exchanges like Binance, Bybit, and Bitget. 

The open interest was slightly lower than this week’s high of $59.8 million. These numbers indicate that there is still some demand for Popcat among traders.

Popcat’s recent retreat has mirrored the performance of many of the larger and more popular cryptocurrencies. Bitcoin (BTC) has continued to consolidate around the $60,000 level. Similarly, most meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Floki have dropped in the past seven days. 

The crypto fear and greed index, a popular measure of sentiment, has retreated from this month’s high of 59 to the neutral point of 46. Meme coins like Popcat thrive when traders are a bit greedy.

Popcat and other Solana meme coins have also faced substantial competition from the newly launched Tron (TRX) tokens. Data from CoinGecko shows that these meme coins have accumulated a market cap of over $370 million. 

Popcat crossed a key support level

Popcat token rose and peaked at $0.8072 this week and then suffered a harsh reversal, falling 21% to $0.6283, its lowest point since Aug. 23.

It dropped below the important support level of $0.6845, its highest swing on Aug. 29, and the upper side of the cup and handle pattern. It also retested the 50% Fibonacci Retracement point and formed a bullish flag pattern.

Therefore, Popcat’s price will likely have a bullish breakout, with the next point to watch being the psychological level of $0.70.