Memecoins experience a downturn, pose questions over portfolios

The meme coin market briefly crashed, dropping approximately 30% of its value. The market has successfully rebounded, but the question remains: Can it happen again, and are portfolios containing meme coins safe? Technically, yes. Every other context varies based on one’s interpretation. For instance, the crash did not hamper the emotions of long-term traders and investors.

A crash happened for a variety of reasons, including the rise of BTC back to power. Bitcoin is well past the consolidation phase and has surpassed the $70,000 milestone. It is next teased to test the resistance of $75,000 and surge as high as $84,000. One theory is that traders have started to make the transition back to BTC because the returns are more likely in large volumes.

Bitcoin was previously exchanging hands at around $65,000. It is now at $70,960.88, up by 5.06% in the last 24 hours. Moreover, it is up by 13.59% in the last 7 days and 9.05% in the last 30 days. Investors now rely on meme coins to maintain their interest, provided their values consistently decline.

Next, the stocks of GameStop and AMC are experiencing a surge in value. GME has already surged by 4,400%, despite a recent 46% downtrend. At the time of writing this article, the growth in the last 30 days had reached 964.99%.

There are dramatic fluctuations, with the potential for larger gains.

The memecoin craze is not entirely discontinued. It has the support of a devoted community and cultural significance. Both factors are likely to hold the flag higher than the sky for the meme coin segment of the crypto market. Mixed reactions suggest a rise of $84,000 for Bitcoin and a possibility of a shift back to the flagship crypto. Altcoins were strong during Bitcoin’s struggles, but current trends indicate that this phase has waned.

Another side of the mixed reaction states that a correction was likely given the massive growth of altcoins, including meme coins. The general sense of the situation is that the meme coin trend has cooled down. Although the trend is still ongoing, it is less likely to culminate in a negative outcome.

The market cap of meme coins last showed a collective gain of 9.54%. The 24-hour trading volume jumped by 107.18%. Most of the trades are in green, led by DOGE, with a value of $0.1621. Dogecoin is one of the favorites in the market, along with Shiba Inu and PEPE. Both are up by 4.72% and 17.46%, respectively, in the last 24 hours.

Other meme coins are following the trend with reasonable surges. WIF’s value has increased by 3.62% to $2.78, while FLOKI’s value has surged by 5.87% to $0.0002104.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

Related Articles

Back to top button
Bitcoin (BTC) $ 64,251.21
Ethereum (ETH) $ 3,495.77
Tether (USDT) $ 0.999591
BNB (BNB) $ 589.86
Solana (SOL) $ 133.43
XRP (XRP) $ 0.486365
Dogecoin (DOGE) $ 0.1238
Cardano (ADA) $ 0.384767