Cash Cat (CASHCAT) has become one of the most talked about crypto assets of the past week. Amid extreme market activity, memecoin skyrocketed to an all-time high of $0.23 on July 14.
Since then, memecoin has experienced extreme downward pressure as prices have fallen. At the time of writing, CASHCAT was trading around $0.12 after falling 32% on the daily charts. As the price decline continued, high-net-worth investors who rushed to save early became bearish and began to turn to cash.
CASHCAT trader offloaded $2.8 million in tokens
Aspect CASHCAT When the craze hit the market, traders, especially whales, spent significant capital to accumulate the token. However, due to the impact of the price drop, the momentum is slowly weakening and these traders have started cashing in.
According to Lookonchain, one trader withdrew $2.85 million from CASHCAT, earning a 952x return. The trader spent just $3,000 to buy 16.3 million CASHCAT and later sold the entire stack for 1,527 ETH, worth $2.85 million.
By locking in this profit, the whale signaled that market speculation had diminished, as large cash outflows usually signal declining sentiment. Therefore, even speculators have become skeptical and now expect the market to continue falling.
Market pressure intensifies
CASHCAT market participants faced extreme pressure as well as whale outflows. Previously, investors were extremely bullish and expected the uptrend to continue by opening leveraged positions.
However, as the memecoin market continues to decline, this price The decline triggered a long wave of liquidations. According to CoinGlass data, long positions worth $2.14 million were wiped out, indicating the strength of the downtrend.
As expected, the increased risk of liquidation caused panic among investors and led them to close their positions. For example, memecoin recorded 65.57 million in Perps Selling volume compared to 45 million in buying volume.
At the same time, the altcoin’s net buying remained negative around -100 million, with a delta of -20.49 million. Fail buys are negative, indicating that more traders are closing their trades out of fear of further losses.
What’s next for Memecoin?
Moreover, CASHCAT is currently under extreme pressure and most market participants are selling aggressively. Under these market conditions, memecoin is at risk of further decline.
Therefore, if investors continue to close their positions, CASHOUT is likely to surpass the $0.1 support and drop to $0.08. To prevent further slippage, memecoin needs to reclaim $0.2, which will effectively wipe out all bears in the market.
Final Summary
- A trader sold 16.3 million CASHCAT worth $2.85 million after investing $3k.
- Cashcat fell 32% to $0.11 amid intense bearish pressure.
