Meme coins are moving into the red zone after top assets, including Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE, dipped over the week. The drop in momentum comes as the wider market lost over $200 million in a few hours on July 28. On the other hand, analysts expect a recovery to take assets back to their previous highs.
Meme Coins Take Major Hit
The meme coin market cap is down over 6% to $61.7 billion in the last 24 hours. This week was plagued by massive outflows as the bearish wave stung holders. Dogecoin, the largest meme coin by market cap, saw 4% outflows today and a large 9.8% across the week.
Traders who pushed the asset to periodic highs on the back of a wider market surge offloaded in panic, spurring a similar reaction in other assets. DOGE exchanges hands at $0.2057, shy of its bull cycle peak that spiraled expectations of the asset heading to $1.
Meanwhile, crypto enthusiast Jonathan Carter highlighted on-chain factors still being in favor of the altcoin. “Dogecoin is validating the neckline after breaking above the double bottom formation on the daily chart. The breakout level is holding well as the price is bouncing off the MA 200, showing commitment to the upward move. Sustained momentum above the resistance zone could target $0.28, $0.33, and $0.41.”
Crypto trader Ali Martinez pointed out that whales picked up 310 million DOGE tokens in the last 24 hours before flagging another potential breakout for the asset. According to him, DOGE’s falling wedge pattern projects a $0.265 trajectory. SHIB recorded wider losses at 6% over the day and 11% this week. The sharp decline underscores the bearish state of meme coins across the board.
Dog-themed coins are down 9% while Frog-themed and AI-themed assets plummeted 9.1% and 10.2% respectively. PEPE dipped 14% in the last seven days with larger outflows in July. Meme coins were generally affected by macro factors and lower sentiments. Unlike top assets, meme coins rally off community buzz, leading to double-digit losses on a slight correction.
After the Bitcoin price hit a new all-time high, meme coins soared but quickly lost ground, maintaining a sideways pattern. At the time of writing, the Bitcoin price dipped below the $116k support and trades at above $112k.
