The recent surge in Solana memecoins has seen a sudden reversal, with $POPCAT and $WIF declining by 18% and 13% respectively today. This downturn follows a period of significant gains, during which $POPCAT reached an all-time high of $0.722.
On-chain data suggests that whales are now taking profits from the previous price surge. According to Lookonchain, a significant whale recently sold 732,481 $WIF for $1.85 million and 716,344 $POPCAT for $281,000.
These transactions were executed at a loss just one hour ago. The whale had initially purchased the same amounts of $WIF and $POPCAT three days ago for $2.18 million and $361,000 respectively, at prices of $2.98 for $WIF and $0.5 for $POPCAT.
A whale sold 732,481 $WIF($1.85M) and 716,344 $POPCAT($281K) at a loss 1 hour ago.
This whale bought 732,481 $WIF($2.18M) at $2.98 and 716,344 $POPCAT($361K) at $0.5 3 days ago.
He lost $336K on $WIF and $80K on $POPCAT in 3 days.https://t.co/hRp5rZwfmA pic.twitter.com/CE2M1erP2x
— Lookonchain (@lookonchain) May 18, 2024
Significant Losses Recorded In These Memecoins In Just 3 Days
The result of these trades has been substantial losses for the whale: $336,000 on $WIF and $80,000 on $POPCAT, totaling a loss of $416,000 in just three days.
This significant sell-off by a major holder has contributed to the sharp decline in prices for both memecoins. The broader market context shows a similar pattern of profit-taking among other whales, as the memecoin sector undergoes rapid fluctuations.
Despite the recent downturn, the memecoin market on Solana remains volatile and highly reactive to whale activities. The decline of $POPCAT and $WIF serves as a reminder of the inherent risks in the memecoin market, where rapid price movements can lead to significant gains or losses within short time frames.
Market participants will be closely monitoring the situation to see if these declines are temporary corrections or indicative of a longer-term trend. The memecoin sector continues to be a high-risk, high-reward area of the cryptocurrency market, attracting both speculative traders and long-term investors alike.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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