Cash Cat [CASHCAT] fell 16% in one day, marking one of the memecoin’s steepest declines.
However, trading Cash Cat could remain risky, especially for traders expecting further downside.
AMBCrypto examined why bearish pressure remained dominant and which signals could still support a rebound.
Why are CASHCAT longs suffering?
Pressure intensified on long traders as the CASHCAT perpetual market recorded a sharp Liquidation imbalance.
Liquidation data measures positions forcibly closed when traders lack sufficient margin to keep them open. Over 24 hours, long traders lost 14.8 times more than short traders. Long Liquidations reached $566,300, while Short Liquidations totaled only $38,210.
The imbalance showed that CASHCAT’s decline caught leveraged bulls on the wrong side. A similar pattern emerged on the 4th of September.
Long Liquidations reached approximately $480,000, compared with $28,000 in Short Liquidations. Repeated forced selling could deepen downside pressure, particularly if leveraged traders continue chasing a reversal.
Spot holders are fueling the decline
The spot traders have also contributed to the decline witnessed over the past day, as Spot Market Netflow remained positive.
Spot Market Netflow is the difference between inflows and outflows on exchanges. When inflows are higher than outflows, resulting in a positive reading, it means more of the asset is being moved onto exchanges, which can increase selling pressure.
That is what is happening right now. Inflows amounted to more than $3.19 million, while Netflow remained at about $96,500. This confirms that sellers still have the edge over buyers.
This trend is also visible across a broader time frame, stretching over the past seven days, during which Netflow reached $1.3 million.
If this trend continues, it could put further pressure on the price and delay the possibility of a rebound in the near term.
There is still some hope
The trading activity in the perpetual market, tracked through the Long/Short Ratio, shows that long traders are still responsible for a larger share of the volume.
In the last 24 hours, about 50.47% of trading volume came from long positions as these traders continued to dominate market activity.
What is more interesting is that the Funding Rate has remained positive and, in fact, climbed higher over the past day, reaching 0.0174% despite the heavy liquidation of long positions.
This suggests that traders remain optimistic about the price outlook and expect the asset to trend higher. However, this comes with a risk. If selling pressure in the Spot Market continues and the bearish outlook expands, liquidations could continue to work against long traders.
Final Summary
- Cash Cat fell 16% during one of the memecoin’s steepest daily declines.
- CASHCAT Long Liquidations reached $566,300 over 24 hours.