Cash Cat [CASHCAT] is down more than 14% in the past 24 hours, extending the weekly losses to over 21%. As a result, its monthly drawdown reached 40%.
The daily trading volume of the memecoin jumped by 84%, reinforcing the selling pressure as risk appetite weakened.
Even Bitcoin [BTC] lost $1,600 in its valuation in a few hours, taking its price to around $84,000. With the broader crypto market dropping, what caused the double-digit decline in CASHCAT?
Trader loses CASHCAT holdings to an attacker
First, there was a market-wide sell-off across the crypto market, especially the Robinhood Chain. Cash Cat is directly correlated to Robinhood’s daily average DEX volume, and the decline explains why its price was plunging.
More selling pressure emanated from a hacker who stole Backpack [BP], MarsCoin [MARSCOIN], and CASHCAT.
As per Lookonchain, 3.7 million CASHCAT tokens, among others, were swapped for Ethereum [ETH], Binance Coin [BNB], and Solana [SOL] before laundering. The largest loss was on BP.
Furthermore, the Layer 2 (L2) network announced users were free to claim the Cash Cat airdrop. This added selling pressure, thus amplifying the daily drawdown.
Falling wedge pattern nears breakout – What’s next?
Technically, the memecoin was approaching the apex of a falling wedge pattern that has been in place since the start of September.
If bulls clear the upper resistance level, CASHCAT could rally back above $0.28. On the contrary, a breakdown exposes lower demand levels at $0.10, $0.08, or $0.04.
The latter was more likely, as the CVD and the CMF indicated capital flight.
That is, more than 14K tokens were sold on MEXC’s perpetual Futures market as per the CVD. Moreover, the CMF reinforced the capital outflow as it sharply dropped from 0.10 to -0.05.
A look into the Liquidation Heatmap showed that wiping out leveraged positions at $0.13 amplified the losses. Due to the dynamic nature of liquidity, there are more orders being stacked below $0.13, increasing downside risk.
However, the concentrated clusters were above $0.14, while the price traded below that level. Other high levels were at $0.15 and $0.16 and could be bullish targets or bearish turning points.
Therefore, CASHCAT remains in a correction phase unless its price can rally past the consolidation pattern.
However, whales were buying the token, hinting the correction might be nearing an end. For instance, one whale bought $145.71K worth of CASHCAT at a market cap of $135 million.
Final Summary
- Cash Cat plunged by 14% in the past 24 hours amid a market-wide sell-off and a whale’s loss to a hacker.
- CASHCAT is trading in a falling wedge pattern, as leveraged orders below its price reinforced bearish sentiment.
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