- The top five tokens lost between 4% and 14% of their value in the last day, causing the market capitalization of meme coins to drop by 5%.
- On a daily basis, traders are comparatively inactive, according to Dogecoin, Shiba Inu, and PEPE.
- The MVRV ratio indicates that two of the top three meme currencies are presently undervalued.
- Because Dogecoin and PEPE have a strong correlation with Bitcoin, the recovery is also dependent on the direction of the BTC price.
- Shiba Inu wallets mainly store unrealized losses, while Dogecoin and PEPE plummet due to increased selling pressure from profitable traders.
In the last day, meme cryptocurrencies lost 5.3% of their market value, dropping to $48.81 billion. On Thursday, there is a correction that affects the top three meme coins: Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE.
Santiment’s on-chain metrics show a decline in transaction activity and increasing selling pressure on the meme coins.
As of this writing, DOGE is trading at $0.1213, SHIB at $0.00001596, and PEPE at $0.00001063.
These circumstances have the potential to raise Dogecoin, Shiba Inu, and PEPE
Relationship to Bitcoin
The prices of Dogecoin and PEPE are closely connected to those of Bitcoin. According to IntoTheBlock data, the two meme coins have a 0.97 and 0.92 correlation with BTC. As a result, in addition to other market drivers and on-chain data, its price trajectory is dependent on the price of Bitcoin.
After falling about 2% in the previous seven days, Bitcoin is now trading above $65,000 early on Thursday, although there is strong resistance there. Traders are exercising caution in light of the macroeconomic events in the US and are bracing for volatility in cryptocurrency prices this week.
Trading activity and sentiment
Traders of Dogecoin are bullish, Shiba Inu observes a neutral attitude, while owners of PEPE are generally negative.
Mixed emotion among traders is evident in the data from the crypto intelligence tracker IntoTheBlock, which is probably the cause of their lack of enthusiasm and the declining activity.
The top three meme coins’ active addresses for the past day are displayed in Santiment’s chart below, along with the price of Dogecoin. Waning address activity indicates that traders are becoming less interested in the asset.
Put pressure on meme currencies for sales
The Global In/Out of the Money (GIOM) indicator of IntoTheBlock calculates how profitable wallet addresses are when they hold an asset. Given that 71.39% of wallet addresses holding Dogecoin are profitable at $0.1205, it is possible that these investors will take advantage of the situation and push for more sales of the biggest meme coin.
Increased selling pressure has a negative impact on an asset’s price
Among wallet holders in PEPE, 80.38% are profitable. This suggests that there is a greater chance that the meme coin may experience more selling pressure.
For Shiba Inu, things are not the same. Because 67% of wallet addresses have unrealized losses, they are less likely to sell their holdings. As a result, SHIB can bounce back.
Dogecoin and Shiba Inu are undervalued, according to the MVRV statistic
Dogecoin and SHIB are currently undervalued, according to the Santiment’s Market Value to Realized Value (MVRV) statistic, which is used to determine if an asset is overvalued or undervalued. The Santiment chart below shows the two assets’ 30-day MVRVs, which are -4.135% and -8.215%, respectively.
Put simply, a negative MVRV value indicates that the asset is generally undervalued and that a larger proportion of traders would experience losses at the current price if all of their coins were sold. Because of this, traders are less inclined to sell their holdings, which means that Dogecoin and Shiba Inu may soon start to rise again.
The 30-day MVRV for PEPE is 0.165%.
The research indicates that Solana performs better in terms of meme coin diversity while Ethereum and Base meme coins lead in terms of holders.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
