The Memecoin market stumbled during the last correction of Altcoin, with many tokens that lose both the market share and the importance in the wider cryptographic narrative. Once the center of the hype guided retail, the memecoins are now fighting to keep up while the capital flows move towards Altcoin more consolidated and fundamentally strong projects. The momentum that pushed these speculative activities during the late phases of the minor event last year has widely dissipated, leaving most of the negotiations well below their recent tops.
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While a handful of selected memecoins continues to provide significant earnings, the exception remains rather than the rule. The current Altcoin gathering favored the sectors with a deeper liquidity and a stronger institutional interest, further pushing the memecoins in the background. This shift suggests that the traders are becoming more selective, avoiding high volatility tokens without strong catalysts.
The Top Darkfost analyst observes that the memecoins are clearly late compared to the wider Altcoin market, both in the performance and in the attention of investors. Without a rebirth of purchases led by Hype, these tokens can continue to undergo short -term. For now, the Memecoin market has to face an uphill battle to recover its previous momentum, while attention and capital focus on activities that show a stronger technical and fundamental force.
Memecoins fights while liquidity flows towards Ethereum
According to Darkfost, the Memecoin market is facing a demanding phase since Ethereum continues to absorb a significant share of Altcoin’s overall liquidity. This shift has constantly reduced the domain of memecoins compared to other Altcoin, reporting a clear change in market preference. Darkfost observes that while a handful of memecoin is still offering earnings, their performance is largely anecdotal and not indicative of a wider trend.
The analyst underlines that this is “clearly non memecoin season” and warns the traders to oversee the sector in the sector in the current market environment. Without the Hype cycles and speculative affluent that generally feed the sharp rally in this activity class, the price action has remained subjected for most tokens. On the contrary, capital is increasingly incorrect towards Ethereum and other fundamentally strong projects that show momentum.
Darkfost recommends that caution should be the guiding principle for investors who consider Memecoin’s positions right now. With Ethereum approaching new maximums and liquidity from the wider Altcoin market, the conditions for a strong recovery of memecoin remain limited.
Looking to the future, the next few weeks will be decisive. If Ethereum breaks in unexplored territory and Altcoin gather towards their highs of the range, some Spillover effects could rekindle the interest in the memecoins. However, without a significant shift in the feeling and distribution of liquidity, the sector can continue to delay, leaving the traders positioned better by focusing on activities with more technical and fundamental configurations.
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Analysis of the market capitalization of memecoin
The total market capitalization of Memecoin is currently approximately $ 70.74 billion, showing a modest profit +2.64% in the last session. Despite the recent increase, the graph reflects a period of greater volatility following a strong event in July which has reached the peak close to the sign of $ 80 billion. Since then, the market has fought to support the momentum, with repeated waste at higher levels and a gradual shift towards consolidation.
The 50 -day mobile average (SMA), currently close to $ 66.57 billion, acts from a dynamic support level, with the recent Pullbacks that have found an interest in the purchase in this area. This suggests that while the bullish feeling has weakened, buyers are still intervening to defend the key support areas. The negotiation volume has also increased in recent sessions, indicating that the market participants are actively positioning despite the wider slowdown.
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However, the inability to break convincingly above $ 75 billion of signals that the sellers still have control of the upper range. For a stronger recovery, Memecoin’s market capitalization should recover and retain above the area of $ 75- $ 76 billion. On the contrary, a break below the 50-day SMA could open the door to a deeper correction, potentially testing the range of $ 64- $ 65 billion.
First floor image from Dall-E, TradingView chart