- All major market cap meme coins are down an average of 63.73% from their yearly highs.
- SHIB, DOGE, and WIF have seen a surge in derivatives volume despite liquidations piling up.
- The market continues to weaken as the CMF index shows declines across all three major coins.
The meme coin craze of March 2024 saw several dog-themed meme currencies hit all-time highs. Since then, all major capitalization dog coins have seen double-digit price rebounds.
OG Meme Dogecoin Shows Resilience
According to blockchain data from LookOnChain, the top three coins by market cap, Shiba Inu (SHIB), Dogecoin (DOGE), and Dogepart (WIF), have all suffered massive declines.
Based on the 52-week high to 52-week low retracement, Dogecoin fell 74% from $0.2266 to $0.5747. Doge has cushioned the blow by bouncing back to its current price of $0.0973 and remains one of the most resilient meme coins on the market.
Non-dog-themed coins have also seen similar backlashes, with Pepe (PEPE) down 58% over the same period, while smaller coins like Book Of Meme (BOME) and Cat In a Dog’s World (MEW) have seen even bigger falls, down 79% and 63% respectively.
SHIB & WIF, the biggest hit during correction
SHIB, the second largest meme currency by market cap, has fallen more than 70% from its yearly high of $0.00004534 and is currently battling resistance at $0.0000135. At this level, SHIB holders are evenly divided between profitable and losing SHIB holders.
This has reduced Shiba Inu’s global market cap from $21 on March 6, 2024 to $7,967,770,483 at the time of issuance. Despite evaporating most of the gains from the spring bull market, SHIB has bounced back from its three-month low of $0.00001112 on August 5, 2024.
Meanwhile, Solana’s WIF, the third-largest cryptocurrency, has fallen 71% since its all-time high of $4.83 on March 31, 2024. WIF had a surprising rally in May, reaching a high of $3.78 on May 29, 2024 before entering a harsher cryptocurrency market correction.
At the time of writing, WIF is trading at $1.47, slightly above its three-month low of $1.11 on August 5, 2024. With volumes low in the spot market, WIF could see a surge in derivatives volume.
According to the latest CoinGlass data, despite $1.29 million in long-term liquidations, WIF attracted leveraged investors as its 24-hour volume increased by 98%, driving its derivatives volume to $1 billion.
On the other side
- According to trading theory, if the cycle peak is fully reversed, there is a greater chance that the price will rebound as traders re-examine their interest in the token.
- SHIB, DOGE, and WIF recorded negative scores on the Chaikin Money Flow (CMF) index, indicating position depletion and weakening buying pressure from large holders.
Why this matters
In March, the cryptocurrency market saw its most successful meme coin rally ever, with a $56 billion peak. Understanding the implications of a bull market reversal can help you time the market.
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