The Rise and Fall of Meme Coins: A Closer Look at SHIB, DOGE, Pepe, and Floki
In the last month, meme coins like Shiba Inu, Dogecoin, Pepe, and Floki have experienced a surge in value, with some seeing triple-digit percentage growth. However, in recent days, these coins have taken a hit compared to their recent highs. The question now is whether the trend of crypto-memes is coming to an end or if there is still potential for another pump.
The Parabolic Trend of Memecoins in the Last 30 Days
- Shiba Inu: Increased by 187% since February 18th, reaching the 11th position on Coinmarketcap with a market capitalization of $16 billion.
- Dogecoin: Up by +73% in the last 30 days, with a market capitalization of $21 billion.
- Elon Musk’s favorite crypto.
- Pepe: Saw a +511% increase from mid-February, with a market capitalization of around $2.6 billion.
- Floki: Experienced a +500% increase in the same period analyzed, with a market capitalization of $1.8 billion.
Additionally, within the Solana blockchain, cryptocurrencies like BONK, WIF, and BOME have seen significant price increases of over X10.
Is the Bubble About to Burst?
With Bitcoin’s recent drop from $70,000, meme coins like Shiba Inu are facing strong selling pressure that could lead to the bursting of last month’s bubble. The market euphoria may be reaching its peak and could soon experience a slowdown in retail trading frenzy within the crypto-meme niche. Entering a parabolic trend during a FOMO phase has proven to be risky and potentially senseless.
Analysis of Shiba Inu’s Price Movement
Shiba Inu has seen a significant decrease in value over the past week but still shows gains when looking at the overall month. Since March 5th, SHIB prices have dropped by -38.7% from their peak. Volumes are decreasing, indicating exhaustion in the bullish trend’s strength. Bears are currently controlling price action and preparing to push SHIB near the 50 daily EMA at $0.000020.
If Bitcoin experiences an upward move, meme coins may benefit; however, if Bitcoin faces rejection downwards, meme coins could suffer further losses.
In times when Bitcoin Dominance retreats, there may be a rotation of capital into other altcoin sectors like DeFi, AI, and RWA. While meme coins still have potential for growth, it is crucial to manage risk effectively during bull markets to protect your portfolio’s value.
Hot Take: What’s Next for Meme Coins?
In the last 30 days, the value of almost all meme coins has soared before experiencing a recent dip. While there is still potential for growth in meme coins like SHIBA, DOGE, Pepe, and Floki, it is essential to approach these investments cautiously and manage risk effectively during volatile market conditions.
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