Meme Coins Losing Momentum: What Does December 2024 Really Have In Store?

Memecoin Market Suffers Steep Decline

On December 10, prominent memecoins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF), plummeted significantly, eroding gains from a recent rally fueled by Donald Trump's support. The downturn pushed the total market capitalization of crypto memecoins to a three-week low of $119.6 billion.

Losses Impact Memecoin Valuations

Dogecoin experienced a 5.6% loss in 24 hours, while SHIB dropped 10.4%. In contrast, Pepe (PEPE) emerged as the only large-cap memecoin that gained, rising 1.7%. The daily trading volume of memecoins surged, indicating significant selling pressure.

Declines in Open Interest

Open interest (OI) for crypto memecoins witnessed a decline, with Pnut (PNUT) leading the drop, shedding 30% in 24 hours. DOGE's OI fell over 20% to $3.1 billion, while WIF's OI decreased 27% to $519 million.

Mass Liquidations in Crypto Market

The memecoin decline coincided with massive liquidations in the crypto market, with over $1.7 billion in leveraged positions liquidated in 24 hours. DOGE and SHIB faced the brunt, with $72.6 million and $22.35 million in long position liquidations, respectively. PEPE and WIF also experienced liquidations, albeit to a lesser extent. This liquidation event ranks as the largest since 2021, signifying a marked shift in the crypto market.

Predictions for December

Projections for memecoin prices in December 2024 suggest volatility. Dogecoin (DOGE) is expected to fluctuate between $0.37 and $0.78, while Shiba Inu (SHIB) and Dogwifhat (WIF) may experience similar variations due to their popularity and the appeal of novelty cryptocurrencies. However, experts advise caution, highlighting the susceptibility of these assets to market trends and external factors.

Caution Urged for Investors

The recent decline in memecoin prices serves as a reminder of their inherent volatility. Forecasts for December 2024 remain uncertain, underscoring the need for caution in crypto investments. Investors are encouraged to remain informed and vigilant to navigate market fluctuations effectively.