- The crypto market has lost momentum and the memecoin market is especially sluggish, with DOGE, SHIB and PEPE all showing low returns over the last week.
- Dogecoin was affected by Elon Musk’s warning to investors not to pour all their wealth into the memecoin and is now trading below its major moving averages
- Shiba Inu is developing a layer 2 platform called Shibarium and a decentralized exchange called ShibaSwap, which could boost its chances of rising in the future.
- PEPE’s popularity is declining and it may face further drops before any potential rally.
- The total memecoin market value is around $20 billion
The entire crypto market has lost most of its momentum over the last few weeks and appears to now be cooling down.
At the moment, even the best-performing cryptocurrencies on the market are up by less than 10% over the last seven days.
The memecoin market especially, doesn’t seem so active in terms of performance. Dogecoin, the memecoin king and 8th largest cryptocurrency by market cap has taken a -3.69% beating over the last day and is showing some sluggishness on the daily timeframe as well [+0.5%]
Just like Dogecoin, Shiba Inu doesn’t seem so impressive either. Dogecoin’s sister coin has taken a -2.32% beating over the last seven days and is struggling with a meagre 0.15% gain over the last 24 hours.
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PEPE, one of the newest and biggest memecoins that took the market by storm and rallied by 2000% in less than a month is also suffering, with a -4.7% hit over the last seven days. This is after $PEPE hit a $1 billion market valuation in a one-month timeframe and suddenly went quiet.
In this article, we examine the memecoin market so far, particularly the performance of DOGE, SHIB and PEPE (three of the largest memecoins by market cap). Here we will try to examine the cryptos’ social sentiment, price action and assess their fate in the short term.
But first, let’s look at…
Meme Coin Market Overview
Firstly, it is worthwhile to mention that while the memecoin market seems to be in a downturn, the general long-term trajectory appears to look as strong as ever.
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Reuters, in a recent insight, mentioned that while the memecoin market is in a temporary dip, it is still performing well over longer timeframes.
The chart above suggests that, around $55 million in liquidity has consistently supported memecoin order books since April 2021 when Elon Musk started tweeting about Dogecoin, and memecoins gained mainstream attention.
The article also mentioned that the majority of the liquidity in the market is attributed to Dogecoin, with the only outliers being the Korean exchange, Upbit, which saw a sharp increase in cryptocurrency trading last month, and the “less reputable” Bitforex with a total trading volume of over $1.6 billion.
Overall, the memecoin market currently boasts a $16.7 billion market cap.
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Dogecoin: Musk’s Support Aids Price Growth
Thanks to Elon Musk’s tweets, Dogecoin experienced a large rise in value in April. However, after losing more than 5% in the recent crypto bear market in May, DOGE currently appears to be in a bearish trend.
Dogecoin was down 4.22% at press time, trading at $0.071. This happened right after Elon Musk, the self proclaimed Dogefather sent out word of warning to Dogecoin enthusiasts early this week.
In the conference in London hosted by the Wall Street Journal, the billionaire entrepreneur said that investors shouldn’t ‘pour all their wealth’ into DOGE.
As a result, Dogecoin price is struggling and may need a solid boost from the Doge army to get back on track.
Dogecoin in the chart, is currently below most of its major moving averages.
Here are some of the key price observations from a technical point of view:
- RSI below the 40 mark indicates that DOGE price action is largely bearish, with seller dominating the market as buyers take the backseat. There is a real possibility that Dogecoin trends further downwards, if RSI doesn’t make a comeback.
- A downward trend of this kind would push Dogecoin into a retest of the $0.06 zone or even lower.
- Dogecoin will now have a chance to rally further upwards from this point.
Shiba Inu In Detail
Shiba Inu is developing a layer 2 platform called Shibarium in addition to its ShibaSwap. Shibarium’s progress has been uneven thus far, with various setbacks driving down the price of Shiba Inu.
Overall, there is some confidence in the ability of SHIB HODLers, in the ability of the memecoin to rise.
The 19th largest SHIB holder, according to Etherscan data, has acquired a staggering 140 billion $SHIB, valued at $1.18 million, through two different transactions in the previous 24 hours.
The chart above shows that Shiba Inu is currently testing a trendline that has been valid since June 2022.
As the launch of Shibarium and Shiba Swap continues to approach,
- SHIB will have better chances of rising further to the upside.
- The RSI is currently bordering on oversold conditions, leading to a possible rise in SHIB’s price
- SHIB still has to break through its major moving averages (200 and 50-day MA) to have a proper chance at hitting $0.000011 again
PEPE In Detail
The popularity of $PEPE is currently beginning to decline, just as many analysts predicted.
The price of the memecoin has fallen significantly and doesn’t seem likely to explode in price anytime soon, the same way it did in the past.
The fate of investors who got in a little late after PEPE boomed, might have some problems with making all their money back.
But that’s the thing about memecoins. When they explode, they do so massively. And when they decline, they drop equally.
PEPE in the charts, appears to be on an ascending trendline. However, the tide predicts a small decline on the memecoin, before any chance of a rally.
- There is a strong possibility that PEPE declines further and hits the $0.0000014 zone
- If this happens, the bulls still have to worry about keeping the price of the memecoin above this level
- If the bears are unsuccessful in pushing the price lower than $0.000014, PEPE may have the chance at another decent rally to $0.0000016 or thereabout
- Overall, the RSI shows that the bulls are currently in control, and PEPE may have good chances at another rally after all.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.