Memecoins
Memecoin chaos? Solana’s WIF, BONK and POPCAT see sharp declines
- As prices declined, a larger portion of traders aligned themselves with long positions.
- BONK and POPCAT are hinting at a recovery and could move first before WIF.
Memecoins based on Solana, including dogwifhat [WIF], Bonk [BONK]And Popcat [POPCAT] all took a break from their rallies. At press time, WIF had lost 9.92% of its value over the past 24 hours.
For BONK, this is a drop of 7.49%, while POPCAT’s price fell by 11.31%, suggesting that selling pressure has taken hold. This performance contrasts with the signals shown by memecoins a few days ago.
For example, POPCAT jumped to $0.55 on May 29. WIF reached $4.10 on the same day while BONK reached $0.000043.
Memecoins face battle with skeptics
AMBCrypto’s findings showed that these previous surges sparked chatter that the tokens were about to be sold off. exceed their historic peaks. But it was not to be.
Furthermore, we considered examine the feeling around each project. As of this writing, WIF’s weighted sentiment has fallen to -0.186.
This means that there have been more negative comments about the cryptocurrency than positive ones. As such, it might be difficult for the token to experience a superb wave of demand in the short term.
Source: Santiment
In the case of POPCAT, the measurement was also in the negative zone at -0.642. BONK was also not spared from a drop in optimistic perception, but compared to the other two, sentiment remained above negative territory.
Despite the unimpressive price action, traders in the derivatives market seem confident of a rebound. AMBCrypto had proof of this after analyzing the Long/Short ratio provided by Change machine.
Don’t give up on predictions
The Long/Short ratio is a measure of investor expectations. If the value is greater than 1, it means that there are more long positions than short positions. Therefore, traders are optimistic about the price action.
On the other hand, a reading below 1 indicates a dominance of shorts and a bearish forecast. Using BONK as a focal point, the indicator’s reading was 1.03 at press time, confirming the bullish view of the market.
Source: Coinglass
A quick look at the indicator with WIF and POPCAT suggests a similar perception. In addition to the above metrics, AMBCrypto assessed social dominance.
This metric tracks the rate of discussionIt is a cryptocurrency. As of press time, WIF’s social dominance has fallen to 0.37%, indicating that conversations about the token have declined.
However, the same was not true for BONK and POPCAT. While POPCAT’s social dominance jumped to 1,389%, BONK was at 1,481%. In terms of price, this metric can show how quickly value can to recover.
Source: Santiment
Realistic or not, here is Market capitalization of BONK in terms of WIF
From the indications above, it seems that BONK and POPCAT could be the first to step up when the respite comes for memecoins.
This is not to say that WIF will not participate in this potential revival. However, this could come after the other two lead the way.