The impending decline in sales of these three meme coins is a multi-level problem that may not only be related to the internal problems of certain projects. Meme coins are on the verge of collapse as market forces take a long time to take effect. These tokens attempt to make up for the lack of internal value and support in the form of technology through viral marketing and social media activities. Such actions have a temporary effect and require more and more hype to be fueled.
It’s hard to imagine a large investor wanting to sell an asset that has already returned 1,000%. However, if we track several million transactions, we can already see numerous examples of meme coins for sale. The first three months of 2024 were a period of massive buying of meme coins, which put upward pressure on the price. This type of speculation often involves periods of overbuying and profit-taking. The price drop is coming after the last one and jokes on social media can’t stop it.
Bonk (BONK-USD)
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Internet memes and satire have increased Bonk (BONK USD) since its founding on Solana (SOL USD) Blockchain. When the market experienced the downturn in 2022, this token raised hopes of a bull market with its appearance. Investors were hoping for a repeat of the rally and Bonk took advantage of this sentiment to increase his popularity.
The climax of $0.000024 It was only in late 2023 that a constant price corridor down to $0.000001 was replaced as the general excitement shifted away from more capitalized coins.
A long correction until the end of December 2023 prevented BONK from crossing ATH. The subsequent growth exceeded the previous result by 1.5x, and investors assumed that this trend would be cyclical and continuous. In reality, the market often behaves illogically, especially when it comes to digital assets without a solid foundation.
BonkSwap and BonkDex entered the project’s ecosystem, but that was not enough to get out of the category of a coin created for entertainment. The last few days have shown that Solana-based meme tokens are seeing a decline, and Bonk itself has fallen 3.5%. The price chart moved lower and landed below its 100-day EMA, adding the token to the list of meme coins to sell. Despite the efforts of whales and promoters, investor interest in this coin is low.
Dogwifhat (WIF-USD)
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The drastic changes in market direction have caused turbulence in the wallets of both large-cap digital asset holders and small meme coins. Last month Dog woman (WIF-USD) was also under pressure from sellers who drove up the price $2. The situation was saved only by promoting the project on social media and the activity of community members.
Last month’s US inflation data caused cryptocurrencies to fall as the numbers fell manifold 0.4% Month for month. Investor uncertainty impacted coins with a technological foundation and rich background. On the other hand, WIF practically did not follow the news, which could indicate the low professionalism of investors in this token. If the trend reverses, they are unlikely to react quickly, resulting in a sharp decline rather than a slight decline.
Dogwifhat’s merits cannot be ignored as the digital asset has managed to transform itself from an unknown token into a meme coin, ranking 35th in market capitalization. However, the return to the unwanted coin category could happen this month, which is why WIF is among the most sold meme coins. After a drop from $4.85 to $3.3, fans of quick profits bought the token. If their expectations of rapid token growth are not met, they will try to get their money back. For WIF, this means a decline in market capitalization and, as a result, a downward trend in prices.
Dogecoin (DOGE-USD)
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The last week has been a series of ups and downs Dogecoin (DOGE-USD): out of $0.16 to $0.2 and back to $0.17. Despite the recovery in the overall market, this cryptocurrency is not showing a steady upward trend. Dogecoin’s recent downward move has resulted in a decline in its OI-weighted funding rate. The coin is facing a decline in market activity and investor interest, who have become more cautious in their purchases. Whales added to the reason for panic as the bearish sentiment arises from the liquidations in which they were involved. The loss of confidence in the digital asset is also confirmed by DOGE’s large movements on the exchanges. One of the last transactions of this kind was 245 million tokens, which amounted to almost $50 million at the time.
Dogecoin is still among the 10 largest in terms of market capitalization, but its position has already begun to falter. Selling pressure caused it to drop to 8th place, and lack of investor confidence led the cryptocurrency to join the list of meme coins to sell. Analysts have different opinions about the strength of the community’s influence on the stability of the token. For smaller projects with less participation from large investors, active community members can contain downturns. However, the highly volatile DOGE can return to values without fueling the hype from 2023, when the daily trading volume was below $400 million. The peak of 2024 seems to be over and the only question is how much the meme coin will disappoint investors.
At the time of publication, Julia Magas did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.