Meme Coins Face a Troubled Market, Dogecoin Drops Over 20%

By: Eva Baxter

Notable meme cryptocurrencies such as Dogecoin (DOGE) and WIF have experienced substantial losses in the past week. These declines reflect the larger instability of the meme coin market, which has been attracting a plethora of new traders lately.

Blockchain analytics firm, IntoTheBlock, recorded an unprecedented number of addresses holding meme coins for less than a month in March, indicative of the influx of new investors propelled by the meme coin frenzy. Dogecoin, despite its popularity in terms of transactions and traders, saw over a 20% drop in its price in the past week. Investment indicators also suggest bearish sentiment, with the Chaikin Money Flow (CMF) showing an outflow of capital and decreased buying pressure over time.

Despite this uncertainty, cryptocurrency analyst Trader Mayne still holds a positive outlook for DOGE, dependent on the meme currency maintaining its current support levels. Broad market sentiment could also influence individual coin values. If the overall crypto landscape suffers from corrections, it could further push down DOGE's value. Events such as regulatory intervention or adverse news concerning meme coins could also sway investor confidence, possibly prompting a sell-off.