Dogecoin, Shiba Inu's 15% Drop In Seven Days Pushes Meme Coin Valuations Down 10%: 'Double Down On Positions'

The global cryptocurrency market capitalization is trading 3% lower at $2 trillion Friday. Yet the meme coin market valuation plunged 10% in a single day.

What Happened: It’s a bleeding crypto market.

Coingecko data shows the meme coin market capitalization is trading 10% down at $42.8 billion. Dogwifhat WIF/USD and Bonk BONK/USD are the only two meme coins in the top 10 that held onto their gains.

While Dogecoin DOGE/USD and Shiba Inu SHIB/USD eroded around 12%-15% in value earlier in the day, the dog coins have recovered some of their losses. Dogecoin's losses came in the wake of significant whale movements and high liquidations. Shiba Inu was holding on to positive daily active addresses.

Over the last seven days of trading, Dogecoin and Shiba Inu have seen a drop of 15% each, destabilizing the meme coins’ valuation — and investor confidence.

Crypto trader Dami-Defi outlined in a tweet that traders should pay attention to altcoins with strong recoveries.

what a recovery from $WIF! 📈

Up +31% from shakeout bottom.

Pay attention to the altcoins with strong recoveries.

Who added more $WIF? pic.twitter.com/upuwk8sC6H

— Dami-Defi (@DamiDefi) July 5, 2024

Another crypto trader HENRI.SOL pointed to the strength of Bonk as it is a "prime example of why this is a meme coin favored cycle." He compared that in the last 90 days, BONK is down 1.24% while Solana is down 23.65%.

Also Read: ‘The Easy Days’ In Crypto Are Over And Meme Coins Have Contributed To This, Says Trader

Why It Matters: Crypto trader JR5 Crypto tweeted that amidst the falling markets, he is looking for positions on the top meme coins. He added, "Doubling down on my positions when prices are cheap."

Meanwhile, another trader Blockchainedbb in a Bitcoin update for traders highlighted that since meme coins are out of question below the 200 Daily EMA shorting is the only way to make money in crypto until the $44,000-$48,000 area.

Crypto industry expert Degentraland appreciated the current dropdown in markets and stated that this sell-off was badly needed. He added that all those who bought low float, high FDV tokens, and celebrity meme coins got shaken out. He optimistically concluded, "Now we can resume up only in peace."

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