Meme Coins Falter as Bitcoin Shows Resilience
The cryptocurrency market experienced volatility in June, driven by geopolitical tensions and macroeconomic uncertainty. While Bitcoin (BTC) has recovered some losses following the conflict between Israel and Iran, the meme coin sector is struggling. Leading tokens like Fartcoin (FARTCOIN), Pepe (PEPE), and Dogwifhat (WIF) extended their losses on Thursday.
Meme Coins See Red
Collectively, meme coins have fallen by 4.7% in the last 24 hours. This contrasts with Bitcoin’s slight upward movement, briefly surpassing $108,000 on Thursday. Fartcoin and Dogwifhat both experienced declines of nearly 10%, while Pepe dropped by 7.5% during the same period.
This bearish trend in the meme coin market suggests that traders are shifting their focus to more established cryptocurrencies. Bitcoin, Ethereum (ETH), and Ripple (XRP) continue to hold onto the majority of their gains from earlier in the week.
Fartcoin Faces Downward Pressure
Currently trading at $0.96, Fartcoin is down approximately 3% for the day. The meme coin’s upside potential is limited by the 200-period Exponential Moving Average (EMA) at $0.99 on the 12-hour chart.
A death cross pattern formed when the 50-period EMA crossed below the 100-period EMA on Monday. This indicates bearish dominance and is likely to keep FARTCOIN under pressure, potentially pushing it towards the next key support area at $0.80, which was last tested on Sunday.
Despite the downward trend, a recovery attempt cannot be ruled out. The Relative Strength Index (RSI) shows signs of a potential upward reversal at 42. A move above the midline of 50 could signal bullish momentum, paving the way for gains beyond the $1.25 resistance level tested on June 17.
Pepe Bulls on the Defensive
Pepe’s outlook remains bearish, with a nearly 2% drop for the day, bringing its price to $0.00000930. Since falling from its May peak of $0.00001632, the meme coin has lost almost 43% of its value, indicating a decline in investor interest.
Data from CoinGlass highlights a lack of trader activity in PEPE, particularly with the open interest in futures contracts plummeting to $491 million. The subsequent increase in long position liquidations to $1.31 million in the last 24 hours, compared to approximately $743,000 in short positions, suggests that sellers have the upper hand.
The path of least resistance may continue to be downward in the coming sessions, supported by a death cross pattern formed when the 50-period EMA crossed below the 200-period EMA on the 12-hour chart. Potential support levels to watch include $0.00000750, which was last tested in early May, and $0.00000600, which was explored in April.
Dogwifhat Maintains Bearish Structure
Dogwifhat’s price is currently at $0.75 after intraday losses exceeded 5%. Downward risks are increasing, accentuated by an 8.4% drop in open interest in the derivatives market to $334 million, according to data from CoinGlass.
The downtrend that has persisted since WIF reached its peak of $1.39 in May has resulted in frequent mass liquidations. Approximately $2 million has been lost in long positions in the last 24 hours, compared to approximately $375,000 in short positions.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator, which has been stagnant below the zero line on the 12-hour chart since June 12, is on the verge of issuing a sell signal. This could further increase risk aversion. A sell signal occurs when the blue MACD line crosses below the red signal line.
Key areas of interest for traders include the mid-limit of the descending channel, the demand area at $0.60, which was tested on Sunday, and the seller congestion at $0.51, which was previously explored as support in late May and early June.
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