Cryptocurrency Market Sees Noticeable Decline in Meme Coins

Cryptocurrency Market Witnesses Decline in Meme Coins

The cryptocurrency market is experiencing a noticeable downtrend in meme coins. BTC and ETH have been key drivers of this decline. Meme coins like Dogecoin, Shiba Inu, and Pepe have underperformed as of June 18th, with a significant drop in trading activity.

Market Outlook Weakens

Traditionally, bull markets start with Bitcoin and Ethereum affecting altcoins later. However, in the recent market correction, Total3 (excluding BTC and ETH) reached $720 billion on June 5th before retreating.

As of publication, Total3 has declined by 19%, reaching $582.88 billion. This pullback has created a descending parallel channel on the daily chart, indicating a downtrend.

RSI Indicator Suggests Bearish Sentiment

The Relative Strength Index (RSI) fell below the overbought zone before reaching 70, indicating that investors were taking profits. An RSI of 70 suggests that altcoins are overvalued, often leading to a trend reversal or pullback.

Technical analysis shows a continued downtrend in altcoins, with Total3 moving within the descending channel. The RSI has also declined from 62 to 30 over two weeks, indicating strong bearish pressure.

Meme Coin Trading Volume Declines

In March, meme coins dominated the market. However, since then, a significant decline has occurred.

Dune Analytics data reveals that meme coin transactions across Ethereum and Solana dropped from a peak of $996.7 million in March to $30.35 million in the week ending June 14th.

Dogecoin, the market leader, saw a 41% decrease in trading volume between April 17th and June 17th. Shiba Inu and Pepe have experienced declines of 68% and 34%, respectively.