The Impact of Recent Crypto Market Trends on Meme Coins

Meme coins have been significantly affected by the latest downturn in the cryptocurrency market, suffering a loss of over $10 billion in total market capitalization within just one week. Normally, such declines can offer traders the chance to establish long positions when the downtrend shows signs of slowing.

However, the SPX6900 (SPX) meme coin has seen a rapid increase in short positions taken by traders, even after experiencing a 30% crash. This raises the question: why are traders opting for shorts instead of longs? Let’s delve deeper into the reasons behind this trend.