Memecoins are exhibiting sideways trading patterns following a mid-week endeavor by cryptocurrencies to shift away from a bearish trend, although assets like PEPE and FLOKI continue to show negative performance.
On-chain data indicates comparable outflows from both memecoins this week as the broader market endeavors to recuperate from prior liquidations. PEPE has experienced a 4% decline in the past 24 hours, accompanied by daily trading volumes reaching $545 million. Meanwhile, FLOKI has also dropped by 4%, albeit with a lower daily volume of $192 million.
The downward trajectory observed in PEPE and FLOKI suggests investors’ movement away from memecoins, eroding the gains made in the market last week. Both assets have recorded 10% outflows over the past seven days, indicating a notable correlation influenced by prevailing market sentiment.
While PEPE has seen a 9.2% decrease in its monthly position, some analysts and its community maintain a bullish outlook, citing previous highs. The decline in asset prices is perceived as a buying opportunity before an eventual market upturn. Social media platforms this week were inundated with bullish sentiment, with many advocating for “buying the dip” in anticipation of further upward movements.
In contrast, FLOKI has witnessed a 57% increase over the last 30 days, attributed to bullish factors and rising cryptocurrency prices. This week, FLOKI received a boost from news of its integration into Binance’s Pay transactions, enhancing its utility as a payment option across multiple merchants. However, like PEPE, FLOKI’s performance is influenced by broader market movements.
A potential weekly reversal in memecoins, characterized by their inherent volatility and frequent asset surges, hinges on broader market performance. Last quarter witnessed substantial institutional inflows into cryptocurrencies, coinciding with Bitcoin’s price surge to an all-time high and the overall market reaching new levels. Similar to previous market fluctuations, the indication of a reversal will be closely tied to the performance of the wider market, with some commentators suggesting potential upticks as the halving event approaches.