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Meme Coins Collapse in Sync with the Crypto Market: Here’s Why
In what has been a bearish event for traders and investors in the cryptocurrency market globally, the meme coin sector once again showed a notable price collapse today, May 1st. Prominent meme-based cryptocurrencies, including DOGE, SHIB, and PEPE, among many others, have noticed a notable price drop over the past 24 hours.
In the context of the broader market’s substantial decline coinciding with the ongoing FOMC meeting, this collapse has unleashed a wave of speculation about the future price action of these coins, adding an element of intrigue among cryptocurrency market participants.
A myriad of cascading parameters appear to be the main factors influencing prices, pushing them towards a bearish movement. Let’s examine on-chain insights that validate the recent collapse of meme coins.
Shiba Inu (SHIB) price drops 8%
Shiba Inu (SHIB), aka the self-proclaimed Dogecoin killer, has witnessed a notable 8.85% drop in its price over the past 24 hours, trading at $0.00002105. This decline in the dog-themed meme token is mostly in line with the bearish sentiment highlighted by the token’s derivatives data.
Coinglass highlighted a substantial decline in investor interest in the token, as SHIB’s open interest fell by 11.85% to $52.91 million. Furthermore, Shiba Inu liquidations totaled $738.93 thousand, highlighting the spike in traders being forced to close positions.
This data collectively rationalizes the drop in SHIB prices, while the turbulent change in the market is also in line with the ongoing FOMC meeting, as mentioned above.
Dogecoin (DOGE) price drops by 8%
Further, Dogemoneta, Shiba Inu’s most prominent rival, has fallen 7.87% in the past 24 hours and is currently trading at $0.125. Similar to SHIB, DOGE derivatives data has also sparked bearish buzz among investors.
DOGE’s open interest fell 12.80% to $693.39 million, while liquidations reached $6.09 million, highlighting a substantial increase in the token’s selling pressure. This is primarily in line with Dogecoin’s bearish movement today, further aligning with factors underscoring a collapse in SHIB’s price.
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Pepe Coin (PEPE) Price Drops 10%
In the meantime, PEPPER, a frog-themed meme token, fell 9.18% in the past 24 hours, reaching $0.000006247. Similar to DOGE & SHIB, on-chain data for the Pepe coin highlighted a bearish trend for the token at the time of writing.
PEPE’s open interest plummeted 5.49% to $64.88 million, while liquidations for the meme coin were valued at $2.66 million, underscoring a bearish trend that falls further in line with the drop in PEPE prices.
While other renowned meme cryptocurrencies including FLOKI, WIF, and BONK have witnessed a price drop of 2-5% over the past day. Further decline in line with the bearish attitude triggered by FOMC meetingfollowed by the bearish wave of on-chain data, the meme coin sector seems to have sparked strong concerns among investors regarding future price action.
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