Meme Coins Waking Up, But Struggling Hard to Leave the Rest of the Crypto Market in the Dust
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Memecoins like Dogecoin, Shiba Inu, and Pepe are currently experiencing weak price recovery, diverging from the recent downward momentum seen in the cryptocurrency market. According to data from CoinGecko, the total market capitalization of memecoins has fluctuated by about 4-7% in the last 24 hours, leaving crypto watchers hanging in the balance. Phewwwww!💸
Among the notable gainers, Pepe (PEPE) made the sharpest recovery with a 21% rise, followed by Floki (FLOKI) with a 14% surge, and DogWifHat (WIF) riding up by 8%.
Even the leading meme token, DOGE, saw a 7% increase, bringing its market cap to ~$22 billion. Impressively, DOGE still commands a significant chunk, nearly 41%, of the memecoin market share.💸
Its competitor, SHIB, is also facing a bullish correction, up 6% on the day, with its market cap now at ~$14 billion, securing its spot as the second most popular memecoin.
What's driving the recently witnessed downturn in memecoins?
1. Weak Altcoin Market Structure: Traders have been cashing in profits, especially as the Relative Strength Index (RSI) signaled overvaluation.💸
2. Declining Memecoin Trading Volumes: Data from Dune indicates a significant drop in memecoin transaction volumes across all blockchains. This suggests a diminishing interest or confidence among traders. Individual memecoins like DOGE, SHIB, and PEPE have seen drastic declines in trading volumes, indicating a waning enthusiasm in the sector.💸
3. Market Sentiment Shifts: The recent US Federggesting a decreased likelihood of interest rate cuts in 2024 has sparked a risk-off sentiment in the crypto market. With the US economy showing signs of strengthening, investors are turning towards safer assets like U.S. Treasuries. Consequently, investors may be reallocating profits from memecoins to other sectors within the crypto ecosystem.💸
Remain vigilant. DYOR!
