Cryptocurrency prices remained under pressure on Monday, continuing a trend that has been in place for nearly two weeks.
Meme Coins Continue to Sell
In total, all meme coins tracked by Queen Gecko The company’s market value has reached more than $38 billion, down from its high so far this year of more than $68 billion.
A closer look at their charts shows that most of them are highly correlated with each other. All of the tokens mentioned below have declined in the past five days and are down more than 50% from their highs this year.
- Bitcoin (BTC) remained stuck below $60,000 while most meme coins continued their sharp decline.
- Dogwifhat (WIF) has been down for five consecutive days and is down more than 51% from its high point this year.
- Similarly, BRETT, the largest cryptocurrency on the main blockchain, has been on a five-day slump, falling 60% from its all-time high this year. Long-term holders have lost more than $1 billion as its market cap has fallen from over $1.89 billion to $794 million.
- Bonk (BONK), the first meme coin from Solana (SOL), was also one of the worst performing cryptocurrencies on August 17, falling 63% from its March highs.
- Pepe (PEPE) also moved to $0.0000071 after falling for several consecutive days.
Additionally, technical data suggests that these tokens have more room to fall.
Baby Death Cross Head and Shoulders Pattern
Pepe, which is often the most actively traded meme coin, fell below its 50-day moving average on July 31 and its 200-day EMA on August 11. If this downtrend continues, it means that Pepe could form a death cross, which often leads to further upside.
In addition, Baby formed a head and shoulders pattern, which is one of the most common bearish signs in the market.
The most important catalyst for these meme coins is Bitcoin, which stalled below $60,000 this week. If Bitcoin resumes its downtrend, it would mean that meme coins will continue to fall, with most of them looking towards their August lows.
Historically, meme coins tend to show extreme movements in the direction of Bitcoin. For example, Pepe’s value rose by more than 1,500% between January and March while Bitcoin’s value rose by more than 80% in the same period. It fell by more than 50% while Bitcoin’s value fell by 20% over the same period.
Traders turn to meme tokens like Pepe, Dogwifhat, Bonk, and Brett when the price of Bitcoin rises due to their cheaper price.
Instead of buying Bitcoin, which is priced at around $60,000, most traders opt for a coin like Pepe, which sells for $0.0000071. The theory here is that these coins have a greater chance of doubling their value than Bitcoin.