Yesterday, the crypto market experienced another sharp drop, with BTC falling below $63,000 and SOL falling to around $125. Although major currencies have not yet fallen to the lows of April this year, the decline of many blue-chip altcoins has approached the level at the beginning of last year's bull market. Although it is normal for the crypto market to rise and fall sharply, it is relatively rare that the crypto market fell while the altcoins did not fall. There are many negative factors behind the continued decline of the market.
First, there was the repayment selling pressure from Mt.Gox, where a large amount of selling activity far exceeded buying, causing a sharp drop in BTC's CVD. Second, there was a large outflow from Bitcoin spot ETFs and a decrease in inflows. In addition, the selling pressure caused by large-scale token unlocking, including miners selling their Bitcoin inventory, also hit the market.
Active selling by investors and the spread of FUD sentiment, coupled with macroeconomic policies and regulatory pressure, have exacerbated market volatility. Taken together, these factors have led to the continued downturn in the current crypto market.
Bitcoin’s dominance is at 53.44%, down 0.68% over the past day. Meanwhile, the flagship cryptocurrency’s market cap has slipped to $1.21 trillion, according to CoinMarketCap.
In the next few days, the BTC bottom will appear near here. After all, it has tested the 200-day exponential moving average for the first time since October 2023 (which is a relatively close position). It is expected that there will be some fluctuations, wash out the unstable chips, and then rise; BTC fell due to the Mentougou compensation incident. The previous Shanzhai did pull back a lot, but now it can't fall anymore, as mentioned below:
Memecoin breaks one-week bear trend with double-digit growth
According to reports, Memecoin has broken a week-long bear trend and achieved double-digit growth in the past 24 hours. While Bitcoin struggled to build bullish momentum, most Memecoins achieved trend reversals and recorded significant gains. Among them, Solana Eco’s Popcat (POPCAT) soared 50% in 24 hours, and Mog Coin (MOG) rose 39%. Elsewhere, Dogwifhat (WIF) rebounded 25% after hitting multi-month lows, while PEPE and Floki (FLOKI) recorded gains of 13% and 11% respectively. Bonk also rose 16%.
WIF and Pepe back on track
Dogwifhat (WIF) is a meme coin that made headlines earlier this year when it reached a market cap of $4 billion. However, earlier this week, WIF’s price dropped to $1.47, its lowest level in months. On June 25, WIF’s price surged by more than 25%, rebounding from its daily low of $1.47 to $1.94, recovering most of its losses from the past week.
From a technical analysis perspective, the simple moving average (SMA) on the 1-day chart has been acting as a resistance level for the price, which further reinforces the bearish sentiment towards memecoin. In addition, the relative strength index (RSI) has fallen below the oversold range, which indicates that the selling pressure in the market exceeds the buying pressure, suggesting that the price of WIF may have room to fall.
However, the market is always full of variables. If the bulls can regain momentum, the price of WIF may challenge the resistance level of $3 in the coming period. This will be a key node for the market to re-evaluate the value of the Dogwifhat (WIF) project.
It is worth mentioning that if the Dogwifhat (WIF) project is able to release impactful updates and announce collaborations with important partners, this could be a catalyst for WIF’s price to surge. In this case, WIF’s price has the potential to surge to $10, which would be a significant endorsement of its market value and potential.
PEPE, another major memecoin among the top 50 cryptocurrencies by market cap, has seen double-digit growth of 13% in the past 24 hours. Despite a 51.29% increase in trading volume, Pepe’s price has fallen by 14.77% in the past 24 hours. It has fallen by 11.23% and 31.57% in the past 7 and 30 days, respectively, further confirming the long-term pessimism in the cryptocurrency market.
However, the market is always full of uncertainty. If the market can push the price of Pepe coin above the critical resistance level of $0.00001150 in the future, the bulls may regain the initiative and try to challenge the higher resistance level of $0.00001410. This shift will be an important test of the current bearish sentiment of Pepe coin.
