The cryptocurrency market is facing the general decline of memecoins and many investors have lost their gains in the past weeks due to this situation. Especially the losses on Dogecoin (DOGE), Shiba Inu (SHIB), Floki Inu (FLOKI) and Dogelon Mars (ELON) push investors to wait for the next levels. With it, experts have revealed critical levels for popular memecoin projects! Here are the details…
SHIB, DOGE, FLOKI, and ELON are wiping out the gains they’ve had in the past weeks!
cryptocoin.com As we have mentioned, Analysts state that memecoins are in a downtrend in general. After the rise in the price of memecoins, especially after Twitter’s iconic bird logo was replaced with the Dogecoin logo, memecoins wiped out their earnings, with Twitter’s logo reverting to the old iconic bird logo.
However, according to experts, historically, memecoin investors start to make profits when the price reaches a local high, and it is often preferred by many investors as bullish levels are temporary. Dog-themed meme coins, on the other hand, have followed the lead of DOGE, the largest meme coin in the ecosystem, with DOGE offering holders double-digit earnings overnight in response to Twitter’s recent logo change.
While memecoin price hikes are fairly short-lived, an increase in owner profits will lower asset prices in the short-term before another catalyst or driver emerges. This thesis is supported by on-chain measurements.
Dogecoin whales start making profits
As large whales with 100,000 to 1 million DOGE, 10 million and 100 million DOGE dispose of their assets, there is a huge increase in profit taking by whales, according to Santiment data.
Big wallet investors have taken a profit in the past when the price has climbed to the local top, as seen in the last week of January 2023. This trend has been driven by short-term rallies in meme coins like Dogecoin.
Activity rate of Shiba Inu (SHIB) whales increases
A similar trend to Dogecoin is also observed in Shiba Inu. As seen in the price chart below, the increase in the price of the meme coin coincides with the increase in the trading volume and activity of SHIB whales.
In terms of whale behavior, the cohort holding 1 million to 10 million SHIB typically accumulates at lows and disposes of their holdings during local tops or bullish events in memecoins.
Critical levels announced for Floki Inu (FLOKI) and DogelonMars (ELON)
A similar trend was noted in terms of daily active addresses and trading volume for the meme coin named after Musk’s dog. A rise in price signals the interest and activity of FLOKI owners, increasing the metrics, while price drops coincide with periods of less activity.
When looking at whale behavior, experts show no specific pattern for FLOKI, unlike SHIB and DOGE. But looking at ELON on the other hand, the supply held by whales is decreasing with the increase in ELON Price. This shows that the whales are starting to make profits by giving up what they have and slowing the price increase of the meme coin. Network growth and trading volume spikes in response to price increases in the meme coin, similar to FLOKI.
During local highs in ELON price, the number of whale transactions above $100,000 is increasing, similar to the trend observed in other dog-themed coins with meme coin competitors.
Will Memecoins be able to stand out from other projects?
As you know, between 2021-2022 memecoins exploded and dominate the cryptocurrency market in general, However, the price rally of Layer 2 coins, Zero Knowledge (ZK) coins and Artificial Intelligence (AI) coins heralded several new popularity for crypto market participants. it happened.
As seen in on-chain metrics, the “transient” nature of memecoin price rallies and the need for a catalyst or driver to push prices higher each time could weigh these coins down in terms of relevance and adoption in the crypto community. Short-term investors seeking to speculate and profit are more likely to turn to meme coins, while large wallet investors and other classes of retail investors gravitate towards the latest narratives in crypto, seeking higher returns and price increases over the long term.
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For the rest of the article SHIB, DOGE, FLOKI, ELON: What to Expect Now?