- Memecoin sector took a massive hit after SHIB, WIF and PEPE saw corrections
- Traders were particularly bearish towards PEPE
The memecoin sector has seen significant growth since the year began. However, the sector’s rate of growth came to a screeching halt after Bitcoin’s fall below $67,000 precipitated a market-wide depreciation. Owing to their high correlation with the king coin, the likes of SHIB, PEPE, and WIF weren’t immune from it all.
All good things come to an end?
In the last 24 hours, popular memecoins like dogwifhat [WIF], PEPE [PEPE], and Shiba Inu [SHIB] saw their prices decline significantly. AMBCrypto’s analysis of CoinMarketCap’s data revealed that WIF declined by 21.33%, while SHIB and PEPE saw their prices drop by 12.50% and 19.23%, respectively.
PEPE and SHIB were moving sideways for quite some time, before this particular correction. The shocker came for WIF holders as WIF’s price action was showing no signs of slowing down on the charts.
Source: Santiment
One of the primary drivers for the price movement of memecoins is how they perform on social media. WIF continued to dominate in this space, compared to other memecoins. WIF had the highest activity in terms of social volume among the three memecoins. PEPE came in second in terms of social activity and SHIB was third.
PEPE and SHIB would need to gain more popularity and garner more attention on social media to see a resurgence in terms of price. If WIF continues to capture market share and people’s attention, it would be harder for other memecoins to compete and stay relevant.
Source: Santiment
Taking a look at the sentiment
In terms of sentiment, SHIB and PEPE were doing relatively well. In fact, Santiment’s data revealed that weighted sentiment for SHIB and PEPE grew, implying that positive comments outnumbered negative comments around these tokens, at the time of writing.
WIF, however, had a tough time in this department. The weighted sentiment declined significantly over the last few days, which could have been caused due to its recent decline in price. Because WIF does not have its own ecosystem or community, a large part of the sentiment around the token is directly correlated to its price movements.
Due to this, when market drawdowns occur, tokens like WIF are extremely vulnerable.
Source: Santiment
Despite the negative sentiment, however, traders have remained relatively neutral towards WIF and SHIB. Traders had taken equal parts long and short positions.
However, traders were extremely bearish against PEPE at press time. Coinglass’ data highlighted that the percentage of short positions taken against PEPE had grown to 52% over the last few hours.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Source: Coinglass
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