Cash Cat [CASHCAT] has become one of the most discussed crypto assets over the past week. Amid extreme market buzz, the memecoin skyrocketed to an all-time high of $0.23 on the 14th of July.
Since then, the memecoin has experienced extreme downward pressure as prices have dropped. At the time of writing, CASHCAT was trading around $0.12, after declining by 32% on the daily charts. With the continued price drop, high-net-worth investors who rushed to accumulate early have turned bearish and started to cash out.
CASHCAT trader dumps $2.8M in tokens
As the CASHCAT mania hit the market, traders, especially whales, deployed significant capital to accumulate the token. However, the momentum is slowly fading amid the price drop, and these traders have begun to cash out.
According to Lookonchain, a trader cashed out $2.85 million from CASHCAT, securing a 952× return. The trader had spent just $3,000 to buy 16.3 million CASHCAT, later selling the entire stack for 1,527 ETH worth $2.85 million.
By locking in this profit, the whale signaled fading market speculation, as large cash‐outs often mark declining sentiment. As such, even speculators have turned skeptical and now expect the market to continue declining.
Market pressure intensifies
In addition to whale exits, CASHCAT market participants have faced extreme pressure. Previously, traders were overly bullish and opened leveraged positions, eyeing a continued uptrend.
However, as the memecoin market continued to decline, this price drop triggered a wave of long liquidations. According to CoinGlass data, $2.14 million in long positions were wiped out, signaling the strength of the downtrend.
As expected, this rising liquidation risk triggered a panic among traders, prompting them to close their positions. For instance, the memecoin recorded 65.57 million in Perps Sell volume compared to 45 million in buy volume.
At the same time, the altcoin’s net buying remained negative around -100 million, with a delta of -20.49 million. Negative perps buying suggests that more traders closed their trades, fearing further losses.
What’s next for the memecoin?
Moreover, CASHCAT is currently under extreme pressure, with most of the market participants aggressively selling. Under these market conditions, the memecoin is at risk of further decline.
Therefore, if traders continue to close their positions, CASHOUT is likely to breach the $0.1 support and drop towards $0.08. To avoid further slippage, the 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 dropped 32% to a low of $0.11 amid intense bearish pressure.
