This year, the cryptocurrency market continued to benefit and reached incredible levels $2.67 trillion. Meme coins as a new trend in digital currencies are keeping up and showing more than 600% positive average price change.
This area already has pulled in $68.3 billion, and many investors refuse to believe in possible losses in the future. However, there are several meme coins for sale in April that require special caution as they can lead to bankruptcy if inattentive owners.
Dogecoin (DOGE-USD)
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When Billy Markus and Jackson Palmer created Dogecoin (DOGE-USD) they wanted to show the world something fun and creative. The meme coin issued 7 years, was trading at a price of a tenth of a cent, but 2020 showed the crypto industry’s sensitivity to hype. Then the project depicting a Shiba Inu dog rose to the sky. exceeded the $0.6 mark.
DOGE was born in late 2013 and introduced Auxiliary Proof of Work the following year (AuxPoW) mechanism. This fundamental and useful innovation did not result in any significant positive changes to the coin’s value. In contrast, Dogecoin saw a significant decline in 2014 $0.00011.
However, the hype of 2020 was not due to improvements in the way the project works or the optimization of payments with DOGE. Rather, the coin gained momentum through viral videos on TikTok. Speculation fueled the price of the token, resulting in a 20x jump from the end of 2020 to September 2021.
Now, this token is lagging behind when it comes to the long-term outlook and transition from bullish sentiment to crypto winter. The reason for this is the speculative nature of the price movement and the unlimited supply. The project allows the creation of 5 billion coins per year.
The crypto community does not view DOGE as a long-term means of preserving value like other meme coins scheduled to be sold in April. This month could see a reversal in the token’s bullish trend. The daily average price takes into account deviations, indicating a possible discrepancy between actual user activity and the price increase. Adoption of the digital asset is not keeping pace with price, which could signal a sharp decline ahead.
Bonk (BONK-USD)
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The bear market of 2022 gave the world Bonk (BONK USD). The original Bonk memes resonated in the crypto space and the token was moved to the Solana network.
The project’s community remains loyal and active, but it is worth noting how strong this factor is. Before the bull rally in 2023, the price of the token had not shown consistent growth. And it was only the hype at the end of 2023 that caused the price to fall $0.0000002 to $0.000037.
General market trends led to a rapid increase in the token value in December. As of mid-2023, BONK’s market cap was below $10 million. Then, at the end of the year, it passed the $1 billion mark. When the hype died down, those numbers returned, with the market cap losing hundreds of millions every month.
Tokens with longer histories have already shown price chart movements similar to the current picture for Bonk. The pattern includes a rapid increase in trading volume and price, a sharp decline, and then a steady decline until the next token-related event. The BONK indicators show the proximity of the zone where the coin will not bring any profit to the holders. At this point, speculators and profit seekers are out of the game and the meme community cannot keep the price at the same high level.
Pepe (PEPE-USD)
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A high place in the market capitalization ranking usually indicates exceptional characteristics of a digital asset. In the case of Pepe (PEPE-USD), 38th place can only illustrate the end of a successful period. The $3.5 billion Behind this is the percentage growth rate for the year 15500%. But the coin is already showing the first signs of a pre-downswing.
One such sign is the recent problems on social media. Since there is no other basis for development, PEPE focuses on trends. The vulnerability to negative news in posts reveals the essence of the token, which is a colossus with feet of clay.
On March 27th, the market witnessed the transfer of 2.6 trillion PEPE to an unknown wallet. At this point, the transaction amount was more than 21 million dollars, which excited the token’s minority holders. The price of the meme coin responded with a decline, which was blocked by the activities of major players to support the PEPE price.
From March 27th to 28th, the token fell from $0.000008116 to $0.000007479. The drop of more than 7.8% in 2 days highlights the possibility of deeper price reductions in the short term.
The recent declines are causing investors to think about making profits. Corrections after long gains are the norm, especially when there is no utility that would encourage holding PEPE. The project’s token holders can protect themselves against the high risks of a sharp collapse through hedging strategies.
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.