#热点话题 #热门趋势 #新币挖矿 $MEME $NOT $BB

Why are meme coins crashing?

Meme coins such as Shiba Inu, Dogwifhat, and Floki have all seen near double-digit declines in recent days.

Social trading volumes for these dog-themed cryptocurrencies have fallen significantly in the past 24 hours.

Bitcoin’s lack of influence seems to have played a major role in this slow decline in the cryptocurrency market.

It is undeniable that the volatility of the cryptocurrency market has decreased over the past week, which can be attributed to the sideways movement of Bitcoin (BTC) prices. However, despite the market’s decline, meme coins have never disappointed investors. But recently, meme coins have suffered a blow. All dog-themed memecoins such as Shiba Inu Coin (SHIB), Dogwifhat (WIF), Floki (FLOKI), etc., have seen their market caps fall by nearly double digits in the past 24 hours.

While Bitcoin has been moving sideways, there are always altcoins that have been volatile and bucked the trend. Memecoins are one of them. However, as mentioned above, SHIB has fallen by nearly 8%, while WIF and FLOKI have also fallen by 10% each.

This effect seems to apply to the entire cryptocurrency market. In less than a week, the cryptocurrency market has seen its market cap fall by $65 billion. As the market outlook starts to look bleak, investors may be pulling out of riskier investments and moving their funds into stablecoins or less risky investments. Apart from Bitcoin’s lack of volatility, this could be another reason for the setback for memecoins.

As a result, the social trading volume of these altcoins has also fallen by more than 20% in the past 24 hours. This clearly shows that the market sentiment is also turning negative as the price falls.

What happens next?

Bitcoin’s decline is unlikely to stop until it finds a stable support level. As mentioned in a previous FXStreet article, these two key levels are roughly $63,000 and $60,000. These support levels are excellent dip buying points for patient buyers who missed their initial entry during the May 1 crash.