Memecoins
The meme market over the last seven days
The week was marked by a significant slowdown in the cryptocurrency market. The values of major assets such as Bitcoin (BTC) and Ethereum (ETH) fell by 12% and 17% respectively over the last seven days.
Sharing a statistically positive correlation with Bitcoin, this decline has also impacted the value of several meme assets. The top 10 meme assets by market cap have all seen significant double-digit price declines over the past seven days.
Dogecoin (DOGE) Falls Below Key Moving Average
At the time of writing, the leading memecoin, Dogecoin (DOGE), is trading at $0.095. The coin’s value has dropped by 24% in the past week. At its current price, DOGE is trading at a price level last seen in February.
The cryptocurrency’s price fell below its 20-day exponential moving average (EMA) on June 7 and has been trading below that level ever since. An asset’s 20-day EMA measures its average price over the last 20 trading days.
When the price falls below this level, it suggests a change in momentum, with sellers overwhelming buyers. This signals an increase in selling pressure and indicates that the price decline will continue.
Learn more: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?
Dogecoin Analysis. Source: TradingView
If the DOGE price decline continues, it will fall to $0.091.
Shiba Inu (SHIB) Battles reduce buying pressure
The price of Shiba Inu (SHIB) has dropped by 23% in the last seven days. At press time, the cryptocurrency was trading at $0.000013.
Also impacted by the overall bearish market trend, the demand for SHIB among market participants has dropped. This is based on the coin’s declining Accumulation/Distribution (A/D) line readings.
This indicator measures the buying and selling pressure (accumulation and distribution) behind the price movement of an asset. When it decreases, it suggests that selling pressure is increasing relative to buying pressure.
As of this writing, SHIB’s A/D line is worth $815.99 billion. This week alone, it has fallen 86% from $6 trillion on July 1.
If an asset’s price also falls in parallel with a falling A/D line, as in the case of SHIB, this strengthens the bearish signal and suggests that the downtrend may have more momentum.
If this trend continues, the value of SHIB could drop to $0.000012.
Learn more: How to Buy a Shiba Inu (SHIB) and Everything You Need to Know
If this projection is invalidated by an increase in purchasing activity, the currency itself the price could climb to $0.000016.
Pepe (PEPE) Decline Puts Long-Term Traders in Trouble
The value of Pepe (PEPE), a frog-themed cryptocurrency based on Solana, fell by 36% over the week under review. This led to the liquidation of many long positions in the token’s derivatives market.
Liquidations occur in the derivatives market of an asset when a trader’s position is forcibly closed due to insufficient funds to maintain it.
Long liquidations occur when the value of an asset suddenly drops and traders who have open positions in favor of a price increase are forced to exit their positions.
The significant bearish bias that continues to follow the altcoin hints at the possibility of further long-term sell-offs. According to readings from PEPE’s Parabolic Stop and Reverse (SAR) indicator, its points are above the meme coin’s price at press time.
This indicator measures the price trends of an asset and identifies potential price reversal points. When its points are placed above the price of an asset, the market is said to be falling. This indicates that the price of the asset is falling and could continue to do so.
If this decline continues, PEPE could drop to $0.0000077.
However, if demand for PEPE increases, the token price could be pushed to $0.0000090.
Disclaimer
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