On June 18, several prominent memecoins, such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), underperformed compared to the broader cryptocurrency market. This downtrend marks a sharp turn from the positive momentum that boosted the sector the previous week. According to CoinMarketCap data, the total market capitalization for memecoins plummeted by 11%, standing at $45.31 billion within the last 24 hours. The daily trading volume surged 79% to $6.25 billion, signaling strong sell-side pressure.
Dogwifhat (WIF) experienced the steepest decline among top-tier memecoins, shedding 14.55% of its market value over the past day. Following close behind, Book of Meme (BOME) dropped 14.3%, and Brett (BRETT) lost 13%. The leading memecoins, DOGE and SHIB, fell by 11.4% and 11.5%, respectively, while PEPE declined by 10%.
The weakening market structure could be a contributing factor to this drop in memecoin values. Historically, retail investors have driven bull markets by moving capital from large-cap cryptocurrencies like Bitcoin (BTC) and Ether (ETH) into altcoins. Despite this history, the recent memecoin price correction pulled the TOTAL3 — the market cap of all cryptocurrencies excluding BTC and ETH — back after hitting $720 billion on June 5. By the time of publication, TOTAL3 had dropped 19% to $582.88 billion.
This pull-back has resulted in the formation of a descending parallel channel in the daily charts. Many traders cashed in their profits as the daily relative strength index (RSI) retreated from the overbought region before crossing 70 due to a rally in Ethereum-based memecoins, which propelled PEPE to new all-time highs. An RSI reading nearing 70 typically indicates that altcoins are becoming overvalued, prompting a trend reversal or a corrective pullback.
Technically, altcoins are entrenched in a prolonged downtrend, as evidenced by TOTAL3’s movement within a descending parallel channel. Over the past two weeks, the RSI dropped from 62 to 30, indicating that bearish sentiment dominates the market. If TOTAL3 is unable to surpass the declining channel’s middle boundary at $600 billion, altcoins, including significant memecoins, may continue their downward trend in the coming days.
Adding to the woes, memecoin trading volume has been on a decline since early March. Dune Analytics data reveals that memecoin transactions across multiple blockchains, including Ethereum and Solana, fell by 97% from their March peak of approximately $996.7 million to $30.35 million in the week ending June 14. This data suggests waning trader interest and confidence in the sector.
For individual memecoins, historical data from CoinMarketCap indicates that DOGE’s trading volume decreased by roughly 41% between April 17 and June 17. Similarly, SHIB and PEPE saw their trading volumes plunge by 68% and 34%, respectively, during the same period.
The memecoin crash has also coincided with massive crypto liquidations. According to Coinglass, the current crypto market downturn has wiped out over $434 million in leveraged positions within the last 24 hours. Long positions in DOGE and SHIB were the majority, with $60.22 million and $22.6 million liquidated, respectively. PEPE and WIF also saw significant liquidations, with $4.4 million and $2.3 million in long positions wiped out.
More than 160,826 traders were liquidated over the past 24 hours. The most substantial single liquidation took place on Binance, involving an ETH/USDC trade worth $6.44 million. When long derivative positions are liquidated without accompanying buying pressure from trading volume, crypto prices, including those of memecoins, are adversely affected.
11.4% drop for DOGE? Seriously? These memecoins really aren’t holding up well.
The daily RSI stats were eye-opening. Always good to stay informed. 🧐📊
Impressive analysis! This dip could be a great buying opportunity for savvy investors.
Interesting read! The recent crash might be a temporary setback for memecoins. Hold tight, everyone!
With this trend, memecoins might become relics of the past.
Market corrections aren’t fun, but they build stronger foundations. 🌟🧱
So many traders liquidated! This sell-off could mean better prices for new buyers.
160,826 traders liquidated? That’s a staggering number. 😵
Appreciate the detailed breakdown of the memecoin market. Time to strategize!
The market is unpredictable, but staying educated helps. Thanks for the info!
Volatility is the name of the game. It’s more important than ever to do your own research.
The liquidation numbers are scary! Over 434 million wiped out in a day? What a mess.
Curious to see how TOTAL3 performs in the coming days. Staying optimistic!
Thanks for the thorough analysis! These swings are part of the crypto world. 📉🌍
Always learning something new about memecoins! Let’s see how they recover from this decline. 🧠💡
Trading volume down, prices down, confidence down. 😒 Memecoins are in big trouble.