 ▲ Dogecoin (DOGE), Shibainu (SHIB) |
On June 18 (local time), major meme coins such as Dogecoin (DOGE), Shibainu (SHIB), and Pepe (PEPE) showed poor performance in the market. This is a departure from the upward trend until last week, and according to Cointelegraph, the overall Memcoin market capitalization fell 11% in 24 hours to $45.3 billion, while daily trading volume increased 79% to $6.25 billion. This indicates that selling pressure has become stronger.
DogWeHat (WIF), which fell the most among the top meme coins in market capitalization, recorded a price loss of 14.55% over the past 24 hours. It was followed by Book of Memes (BOME), down 14.3%, and BRETT in third place, down 13% over the same period.
Regarding this decline in the price of MEMCOIN, Cointelegraph first cited the weakening of the market structure. There is a tendency for capital to move from large cryptocurrencies to small altcoins, but due to the current price adjustment of Memecoin, the 'Total 3' index (the total market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum) dropped on June 5th. Afterwards, it fell 19%. This is a phenomenon that occurred as the daily relative strength index (RSI) emerged from an overbought state.
The media also cited the decline in memecoin trading volume as the cause of the bear market. According to Dune Analytics data, memecoin trading volume has decreased by 97% across all blockchains since March, with DOGE, SHIB, and PEPE also seeing significant declines.
In particular, Cointelegraph pointed out that the large-scale liquidation of cryptocurrency due to the ongoing cryptocurrency market decline was accompanied by the memecoin crash. According to Coinglass data, more than $434 million in leveraged positions were liquidated in the last 24 hours, with long positions in DOGE and SHIB accounting for a significant portion. The explanation is that this liquidation occurred in a situation where there was insufficient buying pressure, which had a negative impact on the price of cryptocurrency, especially the price of Memecoin.
Lucy Hu, senior analyst at Hong Kong digital asset management firm Metalpha, said, “The memecoin market has seen an overall decline this month as the price of Bitcoin has been under downward pressure. Investors are concerned as the U.S. Federal Reserve hints at one interest rate cut this year. “They have converted their assets from altcoins to Bitcoin for risk management, and as a result, memecoins such as Dogecoin may continue to experience difficulties,” he analyzed.
