As a seasoned researcher with a background in cryptocurrencies and financial markets, I’ve seen my fair share of market volatility and sudden price movements. In the past 24 hours, I’ve witnessed yet another intriguing development in the crypto space: the significant decline of meme coins like Dogecoin (DOGE) and Pepe (PEPE).
Over the past day, the prices of popular meme coins like Dogecoin (DOGE) and Pepe (PEPE) have experienced substantial declines. As indicated by CoinMarketCap’s data, these tokens have suffered losses of over 2% for Dogecoin and over 4% for Pepe.
After a sudden increase in meme coin prices due to the news of former President Donald Trump’s close call during his stay at a hospital in Pennsylvania last weekend, there has been a subsequent drop. This development came despite initial positive effects on the crypto market as a whole, with Bitcoin (BTC) and Ethereum (ETH) also experiencing notable price hikes.
Immediate Market Reaction
Following Trump’s occurrence, the crypto market responded favorably. The price of Bitcoin, previously hovering around $58,000, soared up to almost $67,000. Likewise, Ethereum bounced back from its July low of $3,000 and reached approximately $3,400.
As a researcher observing the cryptocurrency market, I noticed that by Thursday, the price increases for DOGE and PEPE had been erased, mirroring the downward trends of Bitcoin (BTC) and Ethereum (ETH). The pattern persisted on Friday, resulting in substantial losses within the meme coin sector.
During the first two weeks of July, DOGE‘s value decreased by over 50%, while PEPE experienced a drop of 36%. Likewise, the values of other meme coins such as Dogecoin WIF (WIF) and Shiba Inu (SHIB) significantly declined during this timeframe.
In spite of the significant decrease, certain investors view this as a favorable moment to increase their holdings. On July 18th, it is alleged that large investors acquired approximately 16 million DOGE in one day, in preparation for potential profits.
In May, a large-scale acquisition of DOGE, valued at around $12 million, was last observed when blockchain analyst Ali Martinez disclosed on X (previously known as Twitter) that whales had bought up to 700 million DOGE within a span of just three days.
Based on the analysis, the Dogecoin (DOGE) tokens were obtained in batches, with each batch consisting of over 200 million tokens.
Whale Activity and Market Predictions
As a crypto investor, I’ve noticed some intriguing patterns in the behavior of the large players or “whales” in the market. Reminiscent of predictions made by QCP Capital back in May, these whales seem to be shifting their focus from utility tokens to meme coins instead.
Based on the company’s report, there has been a notable change in investor focus from established digital assets like Solana (SOL), Ripple‘s XRP, and Cardano‘s ADA towards more volatile “meme tokens” such as DOGE, SHIB, and PEPE.
According to QCP Capital’s observation, meme coins like Shiba Inu and Pepe have been among the most popular ones, as indicated by their high open interest rankings. These coins have recently seen impressive double-digit percentage gains.
In the meme coin market, which doesn’t offer much practical value, there have been numerous instances of people becoming millionaires through their investments. The cryptocurrency sector has witnessed such remarkable success stories.
Last week, a shrewd crypto investor earned a substantial $8 million windfall by acquiring MAGA (TRUMP) tokens for just 540,700 USD. The unexpected surge in value followed the controversial July 13th attack from former President Trump, causing quite a stir within the meme coin community.
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2024-07-19 18:33