“Meme coins” are no longer amusing and crypto dogecoin bites the dust

This sharp decline can be explained in particular by numerous investor liquidations in recent weeks.

A brutal correction for dogecoin. Elon Musk’s favorite “meme coin” has seen a sharp decline in recent days. It lost 10% last week and 18% over one month, according to the latest data available on Coinmarketcap this Wednesday, June 19. The token was stabilizing at 11 cents at the time of writing (11 a.m.).

The cryptocurrency suffered heavy liquidations from investors who had purchased tokens long ago. More than 60 million dollars were sold in 24 hours at the start of the week. Unprecedented since May 2021. It is the fact of selling numerous long positions (in other words long positions because they are betting on the price increase) which explains this significant drop in the price of dogecoin.

This mass liquidation occurred at the same time as similar movements on bitcoin, ethereum and other cryptocurrencies. For example, according to Coinmarketcap, bitcoin has lost more than 3% over the last seven days and solana more than 8%.

The shiba inu also in sharp decline

What makes this decline in dogecoin different from other times is that when there was a significant sell-off of the token, many investors returned and the price of the cryptocurrency stabilized at equilibrium. But there, for dogecoin, investors are no longer there, as if the “same coins” were no longer amusing.

This significant drop in “meme coins” also affects shiba inu, the little sister of dogecoin, an even more speculative cryptocurrency. It lost 16% in one week and more than 25% in one month. Even though cryptocurrencies have generally been in a downward cycle in recent weeks, these “meme coins” are experiencing a greater decline.