Cryptocurrency markets are known for their volatility, perfectly exemplified by recent moves in popular meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and the emerging BONK. Reflecting broad market sentiment and investor behavior, these digital currencies reflect the current state of the cryptocurrency industry and hint at its unpredictable nature.
Despite recent declines in market valuations, partly due to changes in market dynamics and investor reactions, analysts are identifying factors that could signal a promising revival for DOGE, SHIB, and BONK in 2024.
Leading Meme Coin, Dogecoin, Struggle
Dogecoin, the leader in the meme coin category, has faced many challenges. The price has fallen more than 16% over the past three weeks after failing to break above $0.11.
Amid the downward market trend, DOGE has been trying to maintain its value above the $0.087 support level.
Despite the selling pressure, the meme coin is likely to rebound to the $0.15-$0.20 range. Dogecoin is forming a bull flag, which could trigger a “rather rapid” move to higher highs, according to technical analyst Big Chonis.
Meanwhile, Jackis, an analyst at Because Bitcoin, emphasized that while each Dogecoin cycle is somewhat different, it is “more or less the same.” He pointed out that speculation surrounding DOGE is increasing significantly as Elon Musk announced that X (formerly Twitter) will launch a payment service in 2024.
Jackis believes such a development could send Dogecoin to $1.
Shiba Inu whale migration and community activities
Shiba Inu, another major player in the meme coin market, has seen significant activity from investors and the community. On-chain data from Whale Alert shows 4.25 trillion tokens moving between wallets, indicating high interest from investors.
Additionally, the Shiba Inu community has been actively participating in token burning, with the recent burn rate increasing by 17.6%, contributing to a total of 410.7 trillion tokens being burned. Despite these efforts, SHIB’s price has fallen more than 12% over the past two weeks and is up 27.5% over the past 30 days.
Despite recent price movements, technical analyst Kaleo advised “not to sleep on” Shiba Inus. Given that Ethereum’s recent price surpassed $2,300, analysts expect SHIB to follow suit.
“(I) wouldn’t be surprised if we see another fresh candle similar to October 2021 when (Shiba Inu) finally breaks out of this base range,” Kaleo said.
BONK is on a turbulent journey.
BONK, a meme coin that quickly gained popularity on the Solana network, has experienced a significant decline in value. Over the past two weeks its value has fallen 41%, and in the past week alone it has fallen 20.8%.
Despite reaching an all-time high (ATH) of $0.00003416 per token on December 15, 2023, the value of BONK has plummeted 57% from its peak. It is currently trading at around $0.00001446, down 4.4% in the last 24 hours.
With a market capitalization of $887 million, BONK remains the third-largest meme coin after DOGE and SHIB.
After this significant price drop, a technical analyst who goes by the pseudonym Cold Blooded Shiller said BONK is poised for a potential bounce. Nevertheless, he remains cautious because there are many people waiting for a rebound.
“The daily demand zone, the last consolidation zone before the blowout, and of course Twitter sentiment peaking with memes about the dude after losing some UPNL could be a good combination of ingredients for relief,” Shiller asserted.
The future of meme coins
The future trajectory of these meme coins is surrounded by uncertainty. BONK’s recent decline reflects the volatile nature of the meme cryptocurrency, which is heavily influenced by market sentiment and investor behavior. Dogecoin’s efforts to maintain support levels and Shiba Inu’s community-driven initiatives highlight the unpredictable dynamics of these digital currencies.
Read more: 7 cryptocurrencies you need in your portfolio before the next bull market
These meme coins continue to capture the attention of both retail investors and cryptocurrency enthusiasts as they navigate the market turmoil. The mix of social media influence, community engagement, and market forces makes the meme coin sector an interesting aspect of the broader cryptocurrency market.
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