- The overall memecoin market plunged, led by DOGE, SHIB, and PEPE.
Technical analysis shows potential further declines for the altcoin market.
As a researcher with extensive experience in cryptocurrency markets, I’ve observed the recent downturn in the memecoin sector with great interest. The overall memecoin market, led by Dogecoin [DOGE], Shiba Inu [SHIB], and Pepe [PEPE], has plunged significantly, causing concerns about their sustainability in a bearish market.
Recently, the cryptocurrency market has seen considerable ups and downs, while meme coins in particular have experienced a marked decrease in value.
As a researcher studying the cryptocurrency market, I’ve noticed that the collectively valued theme-based digital currencies, which draw inspiration from internet memes and humorous concepts, have experienced a decrease in their total market capitalization. Specifically, this decline amounts to approximately $54.5 billion, representing a 3.3% reduction within the past day.
As a market analyst, I’ve observed that these cryptocurrencies, known for their volatile behavior, have experienced a significant downward trend lately. The most notable contributors to this decline are Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE).
Following a strong stretch of development, Dogecoin and PEPE experienced a significant decline. For example, Dogecoin saw a weekly increase of 9.8%, but both coins dropped more than 4% within a day.
As a crypto investor, I’ve noticed that Shiba Inu hasn’t been faring well lately. Over the past week, its value has gradually declined, with a particularly significant drop of 4.5% occurring just yesterday.
As a researcher studying the behavior of meme coins during market downturns, I’ve noticed a concerning trend of price declines that has generated discussions about their long-term viability.
Despite Shiba Inu leading the charge among top 3 meme coins regarding price performance, AMBCrypto has predicted that if the bulls are successful, SHIB could reach a target of $0.000031 in the near future.
Memecoins market shift coming
The downturn in memecoin values coincides with a broader decline in their trading volumes.
Based on Dune Analytics’ findings, the number of meme coin transactions on prominent blockchain networks like Ethereum (ETH) and Solana (SOL) has experienced a significant decline.
I’ve analyzed the market trends and was astounded to find that the weekly trading volume plummeted from a peak of approximately $998.55 million in March down to a mere $1.6 million by the 6th of May.
A notable decrease in trader engagement and conviction towards these digital assets is suggested by this substantial reduction.
Looking more closely, individual meme coins have mirrored this trend.
The trading volume of Dogecoin has been cut in half during the past two months, whereas Shiba Inu and PEPE have experienced even greater decreases with over 80% and 50% reductions in their respective volumes.
This overall market behavior reflects a broader disinterest from investors.
Implications for the broader crypto market
As a seasoned crypto investor, I’ve noticed that the recent downturn in meme coins might signal larger market troubles on the horizon. Historically, bull runs in the crypto market have been fueled by robust activity among altcoins.
The current slump affecting all areas indicates that pessimistic tendencies could persist in the wider cryptocurrency market.
As a market analyst, I’ve observed that the market capitalization of altcoins, or those cryptocurrencies other than Bitcoin and Ethereum, has experienced several significant downturns based on technical analysis.
This indicates a possible prolonged bearish phase for altcoins.
Additionally, the altcoin market has encountered a notable resistance level on its 6-hour chart in recent trading. This area is denoted by a “shooting star” candle, which is followed by a bearish engulfing pattern where a larger bearish candle closes below the previous smaller bullish one.
Based on this sequence, it appears that the altcoin market could experience further declines until a notable low is reached. Subsequently, there’s a possibility for an upturn.
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2024-05-07 20:08