- The Memecoin sector took a hit after SHIB, WIF, and PEPE saw corrections
- Traders were particularly bearish on PEPE
The memecoin sector has seen significant growth since the beginning of the year. However, the sector's growth rate came to a screeching halt after Bitcoin's drop below $67,000 led to a market-wide depreciation. Given their heavy connection to the royal currency, the likes of SHIB, PEPE and WIF have not been immune.
All the good stuff ends?
In the past 24 hours, popular memes like dogwifhat have emerged [WIF]baby [PEPE]and Shiba Inu [SHIB] Saw their prices drop significantly. AMBCrypto's analysis of CoinMarketCap data revealed that WIF declined by 21.33%, while SHIB and PEPE saw their prices decline by 12.50% and 19.23%, respectively.
PEPE and SHIB had been moving sideways for some time, before this particular correction. The shock came to WIF holders as the price action in WIF showed no signs of slowing down on the charts.
Source: Feelings
One of the primary drivers of meme coin price movement is how they perform on social media. WIF has continued to dominate in this space, compared to other meme currencies. WIF had the highest activity in terms of social volume among the three meme coins. PEPE came in second place in terms of social activity, and SHIB came in third place.
PEPE and SHIB will need to gain more popularity and attract more attention on social media to see a recovery in terms of price. If WIF continues to grab market share and people's attention, it will be difficult for other meme currencies to compete and stay relevant.
Source: Feelings
Look at the feelings
In terms of sentiment, SHIB and PEPE performed relatively well. In fact, Santiment data revealed that weighted sentiment for SHIB and PEPE grew, meaning that positive comments outnumbered negative comments around these tokens, at the time of writing.
However, WIF had a tough time in this department. Weighted sentiment has declined significantly over the past few days, which could have been caused by the recent decline in price. Since WIF does not have its own ecosystem or community, a large part of the sentiment around the token is directly related to price movements.
As a result, when market withdrawals occur, tokens like WIF are extremely vulnerable.
Source: Feelings
Despite the negative sentiment, traders remained relatively neutral towards WIF and SHIB. Traders took equal parts of long and short positions.
However, traders were very bearish against PEPE at press time. Coinglass data highlighted that the percentage of short positions taken against PEPE rose to 52% over the past few hours.
Read Shiba Inu [SHIB] Price forecasts 2024-25
Source: Coinglas
