With the price of bitcoin falling from the $70,000 level to below $64,000, it is understandable that meme coins have suffered as a direct result of this. During this time, meme coins both large and small have seen their prices drop significantly, raising concerns about whether the summer of meme coins is over. However, considering previous drops, there may still be hope, especially as crypto analysts continue to predict further rise for these coins.
Meme coins fight to stay
A cursory look at the list of meme coins on the CoinGecko website sample that these coins have continued to bleed drastically over the last week. Its level of decline compared to bitcoin and ethereum puts into perspective how volatile these cryptocurrencies can be.
For clarity, over the last week, the price of bitcoin has fallen by around 7%, and ethereum recorded similar losses of 5.4%. However, compared to the performance of even the biggest meme coins such as Dogecoin and Shiba Inu, we see how these coins have performed even worse.
On the one hand, Dogecoin's price was up 11.6% during this time, bringing its price below the $0.12 support level. Similarly, Shiba Inu price has seen notable losses of 15.6%, which also puts it below an important support level of $0.000018. PEPE, a new favorite for cryptocurrency investors, has seen the smallest losses among the top five, at 7.1%.
Additionally, the price of Dogwifhat, Solana's top meme coin, has fallen 32.7% during this time to $1.6, with losses of 7.9% in the last day alone at the time of writing. . It is followed by FLOKI, which has seen losses of 15.9% in the 7-day period.
Other notable mentions include BONK down 17.9% and Book of Meme (BOME) down 14.2% in the same period. BRETT, the leading meme coin on the Base network, is down 10.6% and TURBO, arguably the most popular meme coin created by ai, is down 15.8%.
Is there still hope from here?
The tendency of meme coins to fall more than the overall market highlights their risk, but it is this same quality that attracts investors. Just as they are more likely to crash sharply when the market falls, they are more likely to bounce back more than any other currency due to their high volatility. The latter makes it a powerful attraction for investors looking for high returns in a short time.
To put this in perspective, when the price of bitcoin rose around 20% in May, companies like BONK were up over 100% from their lows. PEPE was exceptional during this time, increasing over 200% in the same period.
If crypto analysts are to be believed and the bull run is far from over, then investors in these meme coins could be threatened once bitcoin begins its climb to $100,000. If bitcoin hits $100,000, which is a nearly 100% rise from here, then expectations are that meme coins will rebound strongly, with nothing less than a 100% rise expected for these volatile cryptocurrencies.
Featured image created with Dall.E, chart from Tradingview.com
