As the price of Bitcoin fell from the $70,000 level to below $64,000, memes understandably suffered as a direct result. During this time, meme coins, both large and small, saw their prices drop significantly, raising concerns about whether or not the summer of meme coins was over. However, given the previous breakdowns, there may still be hope, especially as cryptocurrency analysts continue to expect a bigger move for these coins.
Meme coins are struggling to hold on
A quick look at the list of coins on CoinGecko Offers These currencies continued to bleed significantly over the past week. Its low level compared to the likes of Bitcoin and Ethereum puts into perspective just how volatile these cryptocurrencies can be.
For clarity, over the past week, the price of Bitcoin has fallen by about 7%, with Ethereum recording similar losses of 5.4%. However, when compared to the performance of the largest cryptocurrencies, such as Dogecoin and Shiba Inu, we see how much worse these coins performed.
For example, the price of Dogecoin gained 11.6% during this time, pushing its price below the $0.12 support level. Likewise, the Shiba Inu price saw notable losses of 15.6%, which also pushed it below the important support level of $0.000018. PEPE, one of the new favorites of cryptocurrency investors, saw the smallest losses of the top 5 companies at 7.1%.
Additionally, the price of Dojoyvat, Solana’s most important meme coin, has fallen by 32.7% during this time to $1.6, with losses of 7.9% in the last day alone at the time of this writing. It is followed by FLOKI, which saw losses of 15.9% over a 7-day period.
Other notable signals include BONK’s 17.9% decline and Book Meme (BOME)’s 14.2% decline in the same time period. BRETT, the leading meme on the mainnet, fell in value by 10.6%, and TURBO, arguably the most popular AI-generated meme, fell in value by 15.8%.
Is there still hope from here?
The tendency of meme currencies to collapse further than the general market highlights their risks, but it is this same quality that attracts investors to them. Just as it is more likely to crash severely when the market falls, it is more likely to rise more strongly than any other currency due to its high volatility. The latter makes it a strong attraction for investors looking for high returns in a short time.
To put this into perspective, when the price of Bitcoin rose almost 20% in May, the likes of BONK rose more than 100% from its crash lows. PEPE has been exceptional during this time, rising more than 200% in the same time period.
If cryptocurrency analysts believe the uptrend is far from over, investors in these meme coins could be under threat once Bitcoin starts climbing to $100,000. If Bitcoin reaches $100,000, which would represent a roughly 100% increase from here, the forecast is that the meme will rally strongly, with a 100% increase expected for these volatile cryptocurrencies.
Featured image created with Dall.E, chart from Tradingview.com
