Aug 3, 2024
6thTrade,
Broader Altcoin Market Impact
The decline in meme coins is part of a broader correction in the altcoin market, which began in July 2022. The total market cap of all cryptocurrencies excluding Bitcoin (BTC), referred to as TOTAL2, has decreased by 13% from a high of $1.031 trillion on July 22 to an intraday low of $942 billion on August 2. This correction has manifested in a descending parallel channel on the daily chart.
Traders capitalized on the overbought conditions indicated by the relative strength index (RSI) reaching 65, prompting a trend reversal or corrective pullback. The RSI has since moved from 51 to 35 over the last three days, indicating continued downside pressure.
If TOTAL2 fails to rise above the major resistance zone between $976 billion and $1.023 trillion, altcoins, including major meme coins, may continue to correct in the coming days.
Declining Trading Volumes
Meme coin weekly trading volumes have been on a downward trend since early March. Data from Dune Analytics shows that transaction flows across all blockchains, including Ethereum and Solana, have dropped by 86% from a peak of approximately $998.55 million in March to $138.25 million in the week ending July 14. Despite a brief increase to $246.5 million the following week, volumes declined by 28.8% to $175.3 million last week, reflecting waning trader interest and confidence.
Historical data from CoinMarketCap indicates a significant drop in trading volumes for individual meme coins between July 22 and August 2. Dogecoin’s volume decreased by approximately 41%, while Shiba Inu and Pepe (PEPE) saw declines of 23% and 19%, respectively.
Additionally, the failure of around 99% of all meme coins launched on Pump.fun, a Solana meme coin creation tool, has contributed to the bearish sentiment in the sector
The cryptocurrency market witnessed a significant sell-off on August 2, leading to a sharp correction in popular meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF). Data from CoinMarketCap reveals a substantial drop in the total market capitalization of meme coins over the last ten days, falling by 21.5% from $54.70 billion on July 22 to $42.91 billion on August 2.
Major Meme Coins Performance
Dogecoin (DOGE): Experienced a 0.25% price drop in the last hour, a 4.13% decline over the past 24 hours, and a 17.34% decrease over the past seven days. The current price is Rp1,820.35 with a market cap of Rp264,642,931,864,215 and a 24-hour trading volume of Rp14,339,315,238,196. The circulating supply is 145,380,616,384 DOGE.
Shiba Inu (SHIB): Saw a 0.01% decline in the last hour, a 5.96% drop over the past 24 hours, and a 15.53% decrease over the past seven days. The current price is Rp0.2364 with a market cap of Rp139,325,342,964,231 and a 24-hour trading volume of Rp4,405,116,016,235. The circulating supply is 589,270,520,002,238 SHIB.
Pepe (PEPE): Decreased by 0.39% in the last hour, 8.61% over the past 24 hours, and 23.29% over the past seven days. The current price is Rp0.1511 with a market cap of Rp63,575,786,033,935 and a 24-hour trading volume of Rp14,254,445,160,200. The circulating supply is 420,689,899,999,995 PEPE.
Dogwifhat (WIF): Increased by 0.16% in the last hour but declined by 11.02% over the past 24 hours and 36.20% over the past seven days. The current price is Rp27,413.96 with a market cap of Rp27,382,315,853,596 and a 24-hour trading volume of Rp8,682,724,932,857. The circulating supply is 998,845,672 WIF.
Bonk (BONK): Fell by 0.18% in the last hour, 7.35% over the past 24 hours, and 26.13% over the past seven days. The current price is Rp0.358 with a market cap of Rp24,726,180,461,263 and a 24-hour trading volume of Rp4,075,231,307,067. The circulating supply is 69,076,972,418,055 BONK.
FLOKI (FLOKI): Dropped by 0.28% in the last hour, 7.42% over the past 24 hours, and 22.64% over the past seven days. The current price is Rp2.29 with a market cap of Rp21,919,091,593,491 and a 24-hour trading volume of Rp3,192,728,611,543. The circulating supply is 9,571,933,681,311 FLOKI.
The ongoing correction in the meme coin market, influenced by a broader altcoin market pullback and declining trading volumes, underscores the volatility and risk inherent in cryptocurrency investments. As the market navigates these fluctuations, traders and investors are advised to conduct thorough research and exercise caution.
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DISCLAIMER
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
