This year, the cryptocurrency market continued to expand its capital, reaching an incredible $2.67 trillion. Meme coin as a new trend in digital currency maintains its trend and shows a positive change of more than 600% in average price.
The sector has already attracted $68.3 billion, and many investors do not believe in the possibility of future losses. However, there are some meme coins that will be sold in April that require special caution as they can lead unwary holders to bankruptcy.
Dogecoin (DOGE-USD)
Source: siberian_horse / Shutterstock.com
Created by Billy Marcus and Jackson Palmer dogecoin (Doge-USD), they planned to show the world something fun and creative. Memecoin took seven years to trade for tenths of a cent, but 2020 showed that the crypto industry is susceptible to hype. Then, a project depicting a Shiba Inu rose to heaven, breaking the $0.6 mark.
DOGE was born at the end of 2013, and the following year it launched an auxiliary Proof of Work (assistant) mechanism. This fundamental and useful innovation did not result in a significant positive change in the value of the coin. Conversely, in 2014, Dogecoin experienced a significant decline to $0.00011.
However, the excitement in 2020 was not due to improved project functionality or optimization of payments through DOGE. Rather, the coin gained momentum thanks to a viral video on TikTok. Due to speculation, the price of the token soared, increasing 20 times from the end of 2020 to September 2021.
Currently, this token is lagging behind in terms of long-term outlook and transition from bullish sentiment to crypto winter. The reason is the speculative nature of price fluctuations and unlimited supply. This project will enable the creation of 5 billion coins each year.
The cryptocurrency community does not see DOGE as a long-term means of preserving value like other meme coins to be sold in April. This month could see a reversal of the token’s upward trend. The daily average of prices addresses the divergence, suggesting a potential mismatch between actual user activity and price increases. A sharp decline is expected in the future as acceptance of digital assets has not kept pace with prices.
Bonk (BONK-USD)
Source: Rebecca VS / Shutterstock.com
The bear market in 2022 will be global Bonk (bonk usd). The original Bonk meme found a response in the crypto space and the token moved to the Solana network.
The project's community remains loyal and active, but the power of this element is noteworthy. The token price did not show steady growth until the start of the 2023 bull market. And only the late 2023 hype pushed its price from $0.0000002 to $0.000037.
Due to general market trends, the token value rose rapidly in December. As of mid-2023, BONK's market capitalization was below $10 million. By the end of the year, it had surpassed $1 billion. Once the hype started to die down, those numbers started to come back, and the market cap was down by hundreds of millions of dollars every month.
Tokens with longer histories have already shown price chart movements similar to Bonk’s current situation. This pattern includes a rapid increase in trading volume and price, a sharp crash, and a steady decline until the next token-related event. The BONK indicator shows the proximity of the zone where the coin will not bring any profit to the owner. At this point, speculators and profit seekers are out of the game and the meme community is no longer able to keep prices at the same high level.
Pepe (PEPE-USD)
Source: kkssr / Shutterstock.com
The top of the market capitalization ranking usually indicates good characteristics of digital assets.in the case of pepe (PEPE-USD) 38th place can only emphasize the end of a successful period. It has reached the $3.5 billion mark, with an annual growth rate of over 15,500%. However, the coin is already showing the first signs of a pre-fall.
One sign of this is the recent problems with social media. PEPE focuses on trends because there is no other basis for development. Vulnerability to negative news within the post reveals the true nature of the token, a colossus on feet of clay.
On March 27th, the market witnessed 2.6 trillion PEPE being transferred to unknown wallets. At the time, the transaction amount exceeded $21 million, exciting minority holders of the token. Memecoin prices reacted to the decline, but were thwarted by the efforts of major corporations to support PEPE prices.
From March 27th to March 28th, the token fell from $0.000008116 to $0.000007479. The drop of more than 7.8% in two days highlights the possibility of further significant price declines in the near term.
The recent decline has investors looking to take profits. Corrections after long gains are common, especially when there is no utility to stimulate PEPE holdings. Token holders of the project can avoid the high risk of sudden collapse through hedging strategies.
On the date of publication, Julia Magas did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
