Published on mei 7, 2024, 1:04 am
Image source: Fox News
```json { "TLDR": "Memecoins like DOGE, SHIB, and PEPE faced a downturn while Bitcoin showed signs of recovery post-halving. Total market capitalization of memecoins dropped by 2.7%, with BONK, FLOKI, and MEME seeing significant losses. This decline aligns with an overall correction in altcoins. Traders are cautious due to decreasing interest in memecoins and shifting towards safer assets amidst uncertainties about interest rate cuts. It is advisable for investors to research thoroughly before making any investment decisions." } ```
Altcoin prices took a hit today as Memecoins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) failed to keep up with Bitcoin’s recovery post-halving. This shift in performance has raised concerns among traders, signaling a possible redirection of attention towards Bitcoin’s recent uptrend.
The total market capitalization of memecoins experienced a 2.7% decline over the last 24 hours, dropping to $55.48 billion according to CoinGecko data. Among the memecoins, Bonk (BONK) saw the most significant loss at 6%, followed by Floki (FLOKI) with a 3.3% decrease and Memecoin (MEME) down by 3%.
Despite being the top meme token in terms of market capitalization, DOGE witnessed a 2.1% decline, bringing its market cap to $22.74 billion and maintaining dominance within the memecoin sector at nearly 41%. SHIB also faced correction on May 6, registering a 2.4% decline and reducing its market cap to $14.29 billion as the second most popular memecoin.
This downtrend in memecoins aligns with a broader correction observed across altcoins as illustrated by the pullback of TOTAL3, the total market cap excluding Bitcoin and Ether. Since early April, TOTAL3 has decreased by 15%, reaching $661.41 billion and forming a descending parallel channel pattern on the weekly chart.
As traders capitalized on overbought conditions signaled by the relative strength index (RSI), Altcoins experienced corrections following an intense rally that began earlier this year. The RSI dipped from an extreme reading of 89 to more moderate levels around 62 over seven weeks, indicating continued downside potential if TOTAL3 fails to break above $660 billion.
Moreover, declining trading volumes in memecoins suggest decreasing interest and confidence among traders recently. Historically, DOGE’s trading volume plunged around 50% between March and May, while SHIB and PEPE saw even sharper declines at 88% and 51%, respectively.
The recent shift towards safe-haven assets like U.S. Treasuries due to diminishing prospects of interest rate cuts set by the Federal Reserve has influenced risk-off sentiment in the cryptocurrency market. This move away from riskier assets like memecoins signifies a broader trend where investors are reallocating profits made during early 2024 from these assets into alternative sectors within the crypto space.
It is essential for investors to conduct thorough research before making any investment decisions as each move carries inherent risks associated with volatile markets.
Original article posted by Fox News
