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Meme Coins Crash In Sync With Crypto Market: Here’s Why – Crypto News

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2 years ago

May 1, 2024

Dripp

In what stages as a bearish event for crypto market traders and investors globally, the meme coin sector again illustrated a considerable slump in prices today, May 1. Prominent meme-based cryptos, including DOGE, SHIB, & PEPE, among many others, noted a remarkable crash in prices in the past 24 hours.

Amidst the broader market’s substantial dip coinciding with the ongoing FOMC meeting, this slump has sparked a wave of speculations about the future price action of these coins, adding an element of intrigue among crypto market participants.

A plethora of on-chain metrics seem to be the primary factors influencing the prices, pushing them towards a bearish movement. Let’s delve into on-chain insights validating the recent slump of the meme coins.

Shiba Inu (SHIB) Price Slips 8%

Shiba Inu (SHIB), a.k.a the self-proclaimed Dogecoin killer, witnessed a notable 8.85% drop in its price in the past 24 hours, trading at $0.00002105. This drop in the dog-themed meme token primarily aligns with the bearish sentiment underscored by the token’s derivatives data.

Coinglass spotlighted a substantial decrease in investor interest surrounding the token, as SHIB’s open interest dipped 11.85%, reaching $52.91 million. Further, liquidations for Shiba Inu totaled $738.93K, highlighting the spike in traders who were forced to close positions.

This data collectively rationalizes SHIB’s price slip, whereas the turbulent shift in the market also aligns with the ongoing FOMC meeting, as mentioned above.

Dogecoin (DOGE) Price Tumbles 8%

Further, Dogecoin, Shiba Inu’s most prominent rival, tumbled 7.87% in the past 24 hours and is currently trading at $0.125. Similar to SHIB, even DOGE’s derivatives data ignited a bearish buzz among investors.

DOGE’s open interest dropped 12.80%, reaching $693.39 million, whereas liquidations reached $6.09 million, highlighting substantial rise in the selling pressure for the token. This primarily aligns with Dogecoin’s bearish movement today, further aligning with the factors underscoring a slump in SHIB’s price.

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Pepe Coin (PEPE) Price Slips 10%

Meanwhile, PEPE, a frog-themed meme token, witnessed a 9.18% dip in its price over the past 24 hours, reaching $0.000006247. Similar to DOGE & SHIB, Pepe coin’s on-chain data underscored a bearish trend for the token at press time.

PEPE’s open interest tumbled 5.49%, reaching $64.88 million, whereas liquidations for the meme coin evaluated as $2.66 million, underlining a bearish trend that further falls in line with PEPE’s price dip.

Whereas, other renowned meme cryptos, including FLOKI, WIF, and BONK, witnessed a 2-5% dip in prices over the past day. Further falling in line with the bearishness ignited with the FOMC meeting, followed by on-chain data’s bearish splash, the meme coin sector appears to have sparked severe concerns among among investors surrounding future price action.

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