Meme Coin Market Drops Sharply Following Bitcoin Price Crash
The cryptocurrency market faced a major setback today as Bitcoin (BTC) tumbled below $108,000, igniting a widespread sell-off. This sudden drop did not spare the thriving meme coin sector, triggering a wave of bearish sentiment and significant volatility across digital assets closely followed by crypto enthusiasts.
Meme Coins Take a Hit: WIF, TRUMP, PEPE, and FLOKI
Data from the past 24 hours reveals that the overall meme coin market capitalization shrank by 3.50%, with trading volumes plummeting a dramatic 48.79%. Top meme coins such as Dogwifhat (WIF), Official Trump (TRUMP), PEPE, and FLOKI each saw their prices sag by between 2% to 7%, intensifying concerns among investors and traders alike.
Despite the volatility typical of meme coins, the current downturn signifies more than just a routine correction—it resembles a substantial market downturn that has left participants on edge.
Political Factors Amplify Market Anxiety
One potential catalyst behind this significant decline comes from recent actions by US lawmakers. They recently called for the US Department of Justice to investigate a cryptocurrency-related dinner attended by former President Donald Trump. News of this investigation rippled through the crypto community, sparking fear and contributing to intensified selling pressure.
As a result, the crypto market saw liquidations totaling over $598 million, with long positions accounting for nearly $508.66 million of these liquidations. This underscores the high-risk environment characterizing the current cryptocurrency landscape.
Whales Accumulate Meme Coins Amid Market Chaos
Amidst the panic, large-scale investors, commonly known as crypto whales, have ramped up their activity. Data from CoinGlass indicates that significant amounts of key meme coins have been withdrawn from major crypto exchanges in recent hours. Specifically, about $38.79 million in PEPE, $33.81 million in TRUMP, $17.19 million in WIF, and $2.13 million in FLOKI exited trading platforms. Such large outflows suggest accumulation strategies by whales, who may be buying the dip in anticipation of market recovery.
Technical Analysis Points to Continued Instability
Technical indicators remain cautious for these digital assets. PEPE has failed to hold the $0.0000145 support after an 11% dip, leaving it vulnerable to further declines of up to 14%. The TRUMP token is currently hovering at the key $12.50 support level—historically a strong bounce zone, but uncertainty remains. Meanwhile, WIF and FLOKI are both displaying bearish patterns, with possible further drops of 15% and 12%, respectively.
Proceed With Caution in the Meme Coin Market
In summary, the current downturn signals instability and heightened risk for meme coins, with external factors and major player movements adding layers of complexity. Crypto investors and traders are advised to operate with increased caution, closely monitoring both technical trends and emerging regulatory headlines.
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