Memecoins
Are memecoins losing momentum? Shiba Inu, Dogecoin prices say…
- The Memecoin sector underperformed other sectors such as DePin and data services last month.
- SHIB and DOGE prices continued to decline.
The memecoin sector has long been one of the most profitable spaces in the cryptocurrency market. However, over the past month, the sector’s performance has been lackluster.
Over the past month, Ethereum, the DePin sector, and the data services sector have outperformed the memecoin sector by a wide margin.
Source: Artemis
Will SHIB and DOGE bear the brunt?
The decline in popularity of memecoins may impact the market share of major coins such as DOGE AND SHIB. The market share of these two blue-chip memecoins was slowly eroding due to the emergence of the Solana memecoin frenzy.
Tokens like BODEN and TRUMP have gained immense popularity, forcing many memecoin traders to move away from traditional memecoins.
As the memecoin hype subsides, both SHIB and DOGE could be vulnerable to significant price swings.
At the time of writing, DOGE was trading at $0.166, while SHIB was trading at $0.00002532. Since the beginning of April both of these tokens have shown extremely high correlation and moved in tandem in terms of price.
The price of both of these tokens has decreased significantly during this period, while simultaneously showing lower lows and higher highs.
This pattern was indicative of a bearish trend. The price of both of these tokens would need a significant amount of momentum to break out of this trend and see green again in the future.
Source: Santimento
A determining factor for the future of memecoin prices is each token’s social media presence.
Analysis of Santiment data by AMBCrypto revealed that the social volume of all these tokens had decreased significantly, implying that the popularity of both of these tokens was declining.
A decline in popularity can have a serious impact on the overall interest in tokens and can also damage price movement.
However, weighted sentiment for both of these tokens has grown.
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This means that even though the number of comments about these tokens has decreased, the type of comments made about these memecoins have been largely positive.
If the positive nature of these comments is enough to sway public opinion in favor of DOGE and SHIB, a reversal of the trend could be expected in the future.
Source: Santimento