- On March 19, the leading memecoins, like Dogecoin (DOGE), Bonk (BONK), and Pepe, dropped significantly after facing downward pressure from the crypto market.
- This drop was fueled by the macroeconomic indicators and geopolitical issues like the war in the Middle East, which sparked a global energy crisis
- Despite the drop in memecoins, these projects are still a hot spot for investors as their trading activities remain high.
Amid the liquidity crunch in the crypto market, the prices of popular memecoins, including Dogecoin (DOGE), Bonk (BONK), and Pepe, have fallen in the last 24 hours.
According to CoinMarketCap, Dogecoin (DOGE) dropped by around 0.62%, forcing its price to trade around $0.09443 with a market capitalization of over $15 billion. In the same time period, Pepe coin price dropped by 1.94% with a market cap of $1.4 billion, while BONK crypto price fell by 1.81% with a market cap of $531 million.
At the time of writing, Pepe and Bonk are trading at around $0.000003445 and $0.000006038, respectively.
Oil Surge and Fed’s Decision Sparked a Downward Trend in Memecoins
The main reason behind this correction comes from a cautious mood across the entire crypto market after the Federal Reserve announced on March 18 to keep interest rates steady at around 3.5% and 3.75% due to ongoing inflation tension and rapidly growing oil prices caused by the war with Iran.
If the Fed reduces interest rates, it is likely to make borrowing cheaper and inject more money into the crypto market. However, volatile assets like memecoins have faced selling pressure after the Fed decision.
Not just memecoins, the entire crypto market has plunged by major percentages as Bitcoin also dropped slightly, which added to the nervousness and made investors step away from volatile assets like DOGE, BONK, and PEPE.
For Dogecoin, the Relative Strength Index is revolving around 43, which is showing slowing buying power, while the Moving Average Convergence Divergence lines point downwards, confirming slowing momentum. Its price is currently trading below its recent 50-day moving average, which is working as overhead resistance.
Pepe has a Relative Strength Index of around 36 to 43 in oversold territory, yet without strong rebound signals. The Moving Average Convergence Divergence is showing an indicator to sell when the token stays under the major averages.
Bonk price is also following a similar trajectory with neutral to bearish indications on both indicators. These indicators are showing that memecoins are facing selling pressure amid the volatility in the crypto market.
Amid the volatility in the crypto market, the Dogecoin price is continuously developing through potential spot exchange-traded funds on major exchanges, along with new payment tools from the House of Doge that allow people to spend the memecoin on everyday items, and the upcoming GigaWallet update will make transactions easy for major businesses.
On the other hand, BONK on the Solana network is expanding its own decentralized exchanges called BonkSwap, which is a trading bot for quick buys and large token burns that reduce supply. This comes during a time when a corporate treasury from Safety Shot now holds millions of tokens to boost stability.
Pepe is also working on community-based growth with new decentralized finance features and non-fungible token integrations that allow holders to use the crypto for simple trading.
These updates are allowing these memecoin projects to still attract traders.
The escalation in the war between the U.S., Israel, and Iran has created a catastrophic impact on the traditional financial market, which has also created pressure on the crypto market. This war has skyrocketed oil prices because of fears over supply disruptions in the Strait of Hormuz.
Also Read: PENGU Price Down 5.41% After Fed Holds Rates Steady
