Today, the meme-based crypto sector grabbed significant attention as prices for the majority of tokens experienced a slump. Notably, DOGE, SHIB, and PEPE saw considerable declines. Here’s an overview of the potential reasons behind this downturn.
In what appears to be a bearish turn of events for crypto traders and investors worldwide, the meme coin sector once again witnessed a substantial drop in prices on May 1. Leading meme-based cryptos like DOGE, SHIB, and PEPE, among others, observed significant crashes in prices over the past 24 hours.
Amidst a broader market downturn coinciding with the ongoing FOMC meeting, this decline has sparked speculation about the future price trajectory of these coins, adding an element of uncertainty among crypto market participants.
Various on-chain metrics seem to be the primary drivers behind the price declines, contributing to a bearish sentiment. Let’s explore on-chain insights that validate the recent downturn in meme coin prices.
Shiba Inu (SHIB) experienced an 8.85% drop in price over the past 24 hours, trading at $0.00002105. This decline in the dog-themed meme token is primarily attributed to bearish sentiment reflected in the token’s derivatives data.
Similarly, Dogecoin (DOGE), the most prominent rival of Shiba Inu, saw a 7.87% tumble in price over the past 24 hours, currently trading at $0.125. Derivatives data for DOGE also contributed to a bearish sentiment among investors.
Pepe Coin (PEPE), another meme token, witnessed a 9.18% dip in price over the past 24 hours, reaching $0.000006247. On-chain data for PEPE indicated a bearish trend for the token at the time of writing.
Additionally, other well-known meme cryptos like FLOKI, WIF, and BONK experienced price dips ranging from 2-5% over the past day. These declines align with the broader bearish sentiment triggered by the FOMC meeting, compounded by on-chain data indicating a bearish trend. This has raised significant concerns among investors regarding the future price trajectory of meme coins.
