Three probable rally reasons: Dogecoin, Shiba Inu, Pepe
Thursday's meme coin market cap was over $136 billion, up 7%.
Pepe corrected while Dogecoin and Shiba Inu rose.
Memes rallied with Bitcoin on Wednesday as it regained $100,000.
The drop drove out over-leveraged futures traders, and open interest recovered Thursday.
After a small dip on Tuesday, Bitcoin (BTC) is over $100,000. BTC's loss caused meme coins to collapse at the start of the week, but they recovered on Wednesday.
Dogecoin (DOGE) and Shiba Inu (SHIB) gained somewhat on Thursday, while Pepe (PEPE) corrected.
Meme coin market cap exceeds $136 billion
As leading meme tokens rebounded from losses earlier this week, the meme coin sector's market valuation rose 7% in 24 hours. The market cap exceeded $136 billion, according to CoinGecko.
DOGE gained somewhat on Thursday and is now trading about $0.41500, roughly 14% below its 2024 top of $0.48434.
On derivatives exchanges like Binance and OKX, the long-to-short ratio is above 4. As the ratio is far over 1, most traders are long because market sentiment is favorable.
Thursday saw increased interest in Shiba Inu (SHIB) and Pepe. 1000PEPE (a financial derivative created from PEPE/USD x 1000 Index price) increased OI by 3.22% while SHIB open interest rose by less than 0.5%.
Profitable bitcoin traders may switch to meme currencies.
On-chain data from Santiment shows Bitcoin's network realized profit/loss measure rising. Large NPL increases imply traders' profit-taking. After taking gains, traders have moved from Bitcoin to altcoins in prior cycles. We term this “capital rotation.”
If the trend continues, Bitcoin traders may switch gains to meme currencies, boosting demand and strengthening DOGE, SHIB, and PEPE.
Dogecoin, Shiba Inu, and PEPE transaction volumes spiked. Spikes corresponded with price increases, which is beneficial.
Rising transaction volume and price rises in the same period indicate greater trader relevance and demand, which might arise from exchange platform influx.
#DOGE #PEPE #SHIB $PEPE $DOGE
