Meme-inspired cryptocurrencies like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are currently struggling in the market as of June 18, showcasing a shift from the positive momentum seen last week.
According to data from CoinMarketCap, the total market capitalization of memecoins has dropped by 11% to $45.31 billion in the past 24 hours. The daily trading volume has surged by 79% to $6.25 billion, indicating a strong sell-off pressure.
Among the top memecoins, Dogwifhat (WIF) experienced the most significant decline, losing 14.55% of its market value in the last day. Following closely behind, Book of Meme (BOME) and Brett (BRETT) also saw losses of 14.3% and 13% respectively.
The performance of leading memecoins like DOGE, SHIB, and PEPE has also taken a hit, with drops of 11.4%, 11.5%, and 10% respectively on the daily chart.
The reasons behind the crash of memecoins today can be attributed to several factors.
One of the key reasons is the weakening market structure. Historically, retail investors have been the driving force behind bull markets, with funds moving from larger cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) into altcoins. However, the current correction in memecoin prices has led to a decline in Total3, the total market cap of all cryptocurrencies excluding BTC and ETH. This pullback has resulted in a descending parallel channel formation on the daily chart.
Additionally, the decline in memecoin trading volumes has been notable since early March, signaling a decrease in trader interest and confidence in the sector.
Furthermore, massive crypto liquidations have accompanied the memecoin crash, with over $434 million in leveraged positions being wiped out in the past 24 hours. The majority of these liquidations were in DOGE and SHIB long positions.
It is important to note that this article does not provide investment advice or recommendations. All trading and investment decisions involve risks, and readers are advised to conduct their own research before making any decisions.