Santiment Issues Warning: Correction Looming for These 2 Meme Coins

Meme Coin Market Assessment: Overbought Signals and Caution Advised

Santiment: Focus on Meme Coins Raises Concerns

Amidst recent market surges, meme coins like Dogecoin (DOGE) and Bonk (BONK) have garnered significant attention. However, market intelligence platform Santiment warns of potential corrections for these speculative assets. Historically, excessive focus on meme coins has often preceded market declines.

Mixed Signals from Dogecoin Derivatives

DOGE's Relative Strength Index (RSI) currently hovers around 69.17, approaching overbought levels. While there remains some room for growth, analysts caution that a correction may be imminent. The derivatives market presents a complex picture, with declining volume and open interest, but surging options trading. Long positions dominate exchanges like Binance and OKX, indicating a bullish sentiment, but recent liquidations of both short and long positions suggest market uncertainty.

Bearish Signs from Bonk Derivatives

Bonk has experienced a recent downturn, trading at $0.000023. Its RSI of 55.12 indicates a neutral to slightly bullish sentiment, but the derivatives market points towards bearish trends. Volume and open interest have decreased, and the long/short ratio suggests a slight downward bias. Significant liquidations of long positions in recent hours further raise the possibility of a market correction.

Analysts' Recommendations

Market participants should closely monitor meme coin price movements and momentum. While short-term growth opportunities may still exist, it is prudent to exercise caution and consider potential price corrections.

For the latest updates on meme coins like Dogecoin and Bonk, stay tuned to reputable news sources and market analysis platforms.