The global cryptocurrency market cap fell 3% to $2 trillion on Friday. However, the cryptocurrency market cap fell 10% in a single day.
What Happened: The Cryptocurrency Market Is Bleeding.
Coingecko data shows the meme coin’s market cap is trading down 10% at $42.8 billion. Dogwifhat Currency pair WIF/USD And bonk Punk/USD They are the only two meme coins in the top 10 that maintained their gains.
While Dogecoin DOGE/USD And Shiba Inu Ship/US Dollar Dogecoin eroded by around 12% to 15% earlier today, and Dogecoin has recovered some of its losses. Dogecoin’s losses came on the heels of significant whale moves and high liquidations. Shiba Inu held on to positive daily active addresses.
Over the past seven days of trading, Dogecoin and Shiba Inu have seen a 15% drop each, destabilizing the valuation of the meme coins — and investor confidence.
Cryptocurrency trader Dami-Defi noted in a tweet that traders should pay attention to altcoins with strong recoveries.
One crypto trader, HENRI.SOL, pointed to Bonk’s strength as “a prime example of why this is a favorable cycle for meme coins.” He compared that to the fact that in the last 90 days, BONK is down 1.24% while Solana is down 23.65%.
Read also: The ‘easy days’ in crypto are over, and one trader says meme coins contributed to it
Why it matters: Crypto trader JR5 Crypto tweeted that during bear markets, he looks for positions in top cryptocurrencies. “I double down when prices are cheap,” he added.
Meanwhile, another trader named Blockchainedbb confirmed in a Bitcoin update to traders that since meme coins are out of the question below the 200 Daily EMA, short selling is the only way to make money in the cryptocurrency until the $44,000-$48,000 area.
Cryptocurrency industry expert Degentraland appreciated the current market downturn and stated that this sell-off was absolutely necessary. He added that all those who bought low-value tokens, high-value tokens, and celebrity meme coins have suffered losses. “Now we can only resume business in peace,” he concluded optimistically.
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