“Meme coins” are no longer fun and crypto dogecoins will bite the dust

This sharp decline can be explained mainly by the numerous liquidations of investors in recent weeks.

Brutal fix for dogecoin. Elon Musk’s favorite “meme coin” has seen a sharp decline in recent days. According to the latest data available on Coinmarketcap this Wednesday, June 19, it has lost 10% in the past week and 18% in one month. The token has stabilized at 11 cents at the time of writing (11:00 AM).

The cryptocurrency has suffered heavy liquidations from investors who bought the tokens long ago. At the start of the week, more than $60 million was sold in 24 hours. Unprecedented since May 2021. It is the fact of selling many long positions (in other words, long positions because they are betting on the price to increase) that explains this significant decline in the price of dogecoin.

This mass liquidation occurred at the same time as similar moves in Bitcoin, Ethereum and other cryptocurrencies. For example, according to Coinmarketcap, bitcoin has lost more than 3% and solana more than 8% in the past seven days.

The shiba inu is also in steep decline

What makes this Dogecoin decline different from other times is that when the token sold off significantly, many investors returned and the price of the cryptocurrency stabilized. But there, for dogecoin, the investors are no longer there, as if the “same coins” stopped being fun.

This significant drop in “meme coins” also affects shiba inu, dogecoin’s little sister, an even more speculative cryptocurrency. It lost 16% in a week and more than 25% in a month. Although cryptocurrencies have generally been in a down cycle in recent weeks, these “meme coins” are experiencing a bigger decline.

Antoine Larigaudrie and S├ębastien Bordry

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