The cryptocurrency market’s wildest actors are at it again. Memecoins, cherished by online folks, continue their unpredictable journey. They provoke investors in a playful way, causing joy or sorrow.
Santiment’s latest report (Sept. 11) illuminates the performance of top meme coins, analyzing on-chain and social indicators for Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE). The results indicate a highly emotional market swayed by social media trends, where instant fortunes are made and lost.
Santiment’s analysis: Dogecoin, Shiba Inu, and Pepe
Dogecoin is at a turning point. Short-term traders can only manage a 1.7% profit and barely break even. The latter, however, is still struggling with a 20.8% loss. This sharp difference is the reason for the market’s hopes for a balance between the forces and a potential rebound.
At the same time, investor fatigue is affecting Shiba Inu. Short-term returns are slightly negative, and long-term holders have lost a substantial 31.7%. However, if the broader crypto market cooperates, SHIB is poised for a comeback.
On the contrary, the new memecoin of the block, Pepe, tells a different story. Despite the recent market turmoil, it has increased 50% over the past five months. However, for the 30-day traders in the red and the long-term holders sitting on 23.8% gains, the frog-faced token may need to shed some profits before finding solid ground, as the latter is not the case.
Role of sentiment in memecoin price movements
The report shows that market sentiment is the most potent factor of price fluctuations in memecoins. When the excitement is at its highest, it is often when a price peak is about to come. On the other hand, the widespread fear is likely the market bottom that will tempt the brave traders to buy the dip.
This emotional rollercoaster is not new to the crypto world. In 2013, Dogecoin burst into the world as a joke, only for it to rise in value in 2021. One of its achievements was the birth of a new sector of cryptocurrencies based on humor and speculation, demonstrating that even a meme can become a multi-billion-dollar asset class in the digital age.
Yet, investors should be conscious that along the road of amazing profits, there is also the path of substantial losses. It is a world of memecoins where today’s joke can be the winning lottery tomorrow or the warning tale of next week.
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