Meme Coins Hit by Sell-Off

Meme coins are facing a steep sell-off as Bitcoin remains stable.

Overview

Meme coins have encountered significant losses in the last 24 hours, with Dogwifhat (WIF), Ai16z (AI16Z), and Bonk (BONK) experiencing the largest declines, as reported by Coinmarketcap. In contrast, Bitcoin (BTC) remains relatively stable, down only 0.63% daily and 0.93% weekly. This scenario underscores a common principle: speculative assets like meme coins depend on market hype and momentum. Stability in BTC often leads to diminished trading volume and liquidity for meme coins, resulting in price drops.

Ai16z

The daily chart indicates that Ai16z is on a bearish trend, with its price at $0.32, below the 7-day simple moving average of $0.34. The immediate support level is around $0.30, which has been tested several times. If this level is breached, the next critical area lies between $0.27 and $0.28. For a bullish reversal, a breakout above $0.40 is necessary.

Dogwifhat

The Dogwifhat daily chart also shows a downtrend, trading at $0.60, below the 7-day SMA of $0.64. The support at $0.60 has been repeatedly tested; if it fails, a decline towards $0.55 is possible. For a reversal to occur, WIF must sustain a move above the 7-day SMA and reclaim the $0.70 – $0.75 range.

Bonk

Bonk is priced at $0.00001451, which is below the 7-day SMA of $0.00001557. The immediate support level is around $0.00001400. A failure to hold this level may lead to further declines towards $0.00001250 – $0.00001300. Significant resistance is present at $0.00001750 – $0.00001800.

Market Sentiment

The fall in meme coin prices reflects the broader downturn in the cryptocurrency market, with most altcoins experiencing a daily decline. Recently, the meme coin sector has suffered even more, notably due to the Libra scandal.

Nic Puckrin, founder of The Coin Bureau, stated, “Sentiment now is probably as low, or even lower than during the FTX collapse.” Analysts have suggested that we may be witnessing the end of the meme coin era, with CryptoQuant CEO Ki Young Ju expressing concern about an impending trough of disillusionment before the market matures.