- All major-cap meme coins dropped an average of 63.73% from their yearly peak.
- SHIB, DOGE & WIF jump in Derivatives volume despite piling up liquidations.
- Market weakness holds as the CMF index turns negative on all three top-dog coins.
The meme coin frenzy in March 2024 saw multiple dog-themed meme currencies hit their all-time peaks. Since then, a double-digit price retracement has followed for all major-cap canine coins.
OG Meme Dogecoin Showcases Resilience
According to blockchain data from LookOnChain, the big three by market cap—Shiba Inu (SHIB), Dogecoin (DOGE), and Dogwifhat (WIF)—have all faced massive drawdowns.
Based on retracement from 52-week highs to 52-week lows, Dogecoin slumped by 74%, from $0.2266 to $0.5747. Doge softened the blow with a bounce to its current price of $0.0973 and remains one of the more resilient meme coins in the market.
Non-dog-themed coins faced similar headwinds, with Pepe (PEPE) dropping by 58% during the same timeframe, while smaller-cap coins like Book Of Meme (BOME) and Cat In a Dog’s World (MEW) faced more turbulence at 79% and 63%, respectively.
SHIB & WIF Hit Hardest Amid Correction
SHIB, the second-largest meme currency by market cap, shook off over 70% from the yearly highs of $0.00004534 and is now battling resistance territory at $0.0000135, where the split between profitable SHIB holders and holders in the red is evenly balanced.
This has slimmed Shiba Inu’s global market capitalization from $21 on March 6, 2024, to $7,967,770,483 at the time of publication. Despite evaporating most of the Spring bull run’s gains, SHIB bounced back from the three-month low of $0.00001112 on August 5, 2024.
Meanwhile, Solana’s WIF, the third largest canine crypto, succumbed to a 71% deficit since hitting the all-time peak of $4.83 on March 31, 2024. WIF had a remarkable run in May, topping at $3.78 on May 29, 2024, before entering a harsher crypto market correction.
As of press time, WIF trades at $1.47, still slightly above the 3-month lows of $1.11 on August 5, 2024. Facing low trading volumes on spot markets, WIF can be picked up by the rapidly rising volume of derivatives.
According to the latest CoinGlass data, despite $1.29M in long liquidations, WIF attracts leveraged investors with a 98% 24-hour volume hike, boosting the Derivatives volume to $1 billion.
On the Flipside
- In trading theory, a full retracement of cycle tops increases the chances of a price bounce if traders show a renewed interest in the token.
- SHIB, DOGE, & WIF scored negative on the Chaikin Money Flow (CMF) index, signaling large holder position deductions and weakening buy pressure.
Why This Matters
In March, the crypto market recorded the most successful meme coin rally with a cycle peak of $56 billion. Understanding the implications of bull run retracements assists in timing the market.
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