The Solana 
$177-based POPCAT token has gained 63% in value over the week, despite fluctuations in the cryptocurrency market. This remarkable increase can be attributed to a significant sale by a major investor and Coinbase‘s support for Solana. However, experts caution investors to be wary of the sustainability of this rapid price surge.
Major Investor Sells 10 Million Tokens
Market data indicates that one of POPCAT’s early investors transferred 10 million tokens, valued at $3.15 million, to the Bybit exchange. This substantial transaction suggests that the investor sold almost all of their holdings.
The mentioned investor entered the market in December 2023 by purchasing a large quantity of POPCAT. Having bought in at lower prices, they obtained significant profits. The latest sale has caused fluctuations in the token’s price, leading market observers to anticipate a potential pullback.
Coinbase Support Accelerates Growth
Coinbase’s support for Solana-based tokens has positively impacted the price of POPCAT. This development has particularly attracted short-term investors, increasing trading volume. The rising demand contributed to POPCAT’s strong performance throughout the week.
Additionally, the value of positions opened in the futures market rose by 7%, reaching $167.88 million. This figure indicates that investors view the rise as an opportunity. However, seasoned market analyst AltCryptoGems emphasizes that investors should proceed with caution.
AltCryptoGems stated, “The short-term rise in POPCAT’s price has occurred due to demand, but a much larger momentum is needed to reach all-time highs.” This assessment encourages investors to avoid hasty actions and to monitor for clearer reversal signals.
The sudden price volatility of the token highlights the importance of careful risk management. Closely tracking market trends emerges as a key factor for investors to make informed decisions.
