Crypto Price Prediction: Why Memecoins Bled Most In Today’s Market Correction?

Crypto Price Prediction: On Tuesday, the crypto market witnessed another wave of selling pressure which plunged its market cap to $2.4 Trillion, registering a 6.28% intraday loss. The leading cryptocurrencies Bitcoin and Ethereum recorded a 6-7% since yesterday, while Solana(SOL) and XRP plunged 11 % and 4% respectively.

Today’s downturn could be accelerated by significant outflow from BTC ETFs as observed on March 18th. Concurrently, the meme coin sector is under considerable sell-off pressure, with prominent assets like DOGE, PEPE, WIF, FLOKI, and BONK experiencing substantial double-digit losses. 

This steep decline is likely a result of investors locking in profits, given that these assets were previously in an overbought state following the rally in late February to early March.

Also Read: Is Meme Coin Hype Coming To An End?

1)Bitcoin (BTC)

Bitcoin (BTC) is the first decentralized digital currency that enables peer-to-peer transactions without the need for intermediaries like banks, using blockchain technology to maintain its integrity and security.

The Bitcoin price has been witnessing an active correction trend for the past six days, which tumbled its value from $73800 to $63300, registering 14.2%. Moreover, the market cap plunged to $1.238 billion, while the 24-hour trading volume wavers around $65 billion.

The recent surge in selling pressure can be traced back to significant withdrawals from Spot BTC ETFs on March 18th. According to Wu Blockchain, there was a notable outflow from Bitcoin spot ETFs, totaling $154 million — marking the first such occurrence in almost two weeks.

According to SoSoValue, the total net outflow of Bitcoin spot ETFs on March 18 was US$154 million, the first single-day net outflow in 11 trading days. Grayscale ETF GBTC had a single-day net outflow of $642 million, setting a record single-day net outflow for Grayscale ETF… pic.twitter.com/BMesXy7izt

— Wu Blockchain (@WuBlockchain) March 19, 2024

With sustainable selling, the BTC price may plunge to $60400 and $56200, the horizontal level which coincides with 38.2% and 50% FIB levels respectively.

Also Read: Japan’s $1.5T Pension Fund Eyes Bitcoin and Gold for Diversification

2)Pepe Coin (PEPE)

Pepe Coin is a community-driven cryptocurrency that emerged from the meme culture surrounding the Pepe the Frog internet meme. It aims to provide a decentralized platform for creators and users to monetize meme content and engage in a fun, inclusive digital economy.

With a market capitalization of $2.67 billion, Pepe coin has made its way into the list of the top 50 cryptocurrencies. However, amid the current correction trend, the PEPE price plunged from $0.0000108 to $0.00000581 registering a weekly loss of 46.4%. 

The falling price is currently seeking support at a 50% Fibonacci retracement level at $0.000058, a pivot level for buyers to retake control. An analysis of the daily chart shows the further breakdown could witness support at the $0.00000466 and $0.000003 mark, while the renewed recovery may retest resistance at $0.00000812, and $0.0000108.

Also Read: Bonk and Pepe Investors Double Down with Defi Tech Token Priced $0.0115

3)BONK 

BONK is a distinctive cryptocurrency project that has garnered attention within the Solana ecosystem. It positions itself as a community-focused token aimed at rejuvenating liquidity on Solana-based decentralized exchanges (DEXs). The coin’s market cap stands at $1.35 billion and has witnessed a trading volume of $360 Billion since yesterday.

The BONK price entered a profound correction trend in early March when the coin reverted from $0.000048. Within half a month, the asset lost a market value of 56.5% to current trade at $0.000021. 

Under the influence of a descending trendline as dynamic resistance, the coin sellers may plunge this asset to lower support levels of $0.000018, and $0.0000147.

On a contrary note, a breakout beyond the overhead resistance will push the renewed recovery to $0.0000366, followed by $0.000048.

Takeaway

The cryptocurrency market prolonged its current correction trend as Bitcoin plunged below $65K on March 19th. While the broader market has responded similarly, the meme coin sectors witnessed an additional outflow, encouraging their holders to reanalyze their positions.