Large-cap meme coins are facing significant selling pressure as geopolitical tensions in the Middle East flare again.
Despite the dovish FOMC meeting on Wednesday, the meme coin market capitalization is down by 5% today on Thursday, data from CoinGecko reveals.
Dogwifhat has suffered the worst decline among top meme coins, correcting by over 12% in the past 24 hours. Pepe and Bonk are also approaching double-digit losses today.
Smart money investors appear to be pivoting towards low-cap gems, with new meme coins in particularly high demand. Tokens such as PlayDoge and Pepe Unchained have already raised impressive figures in their presale stages.
Top Meme Coins Crash As Tensions Flare Again In Middle East
The threat of an all-out war in the Middle East has again emerged as a major obstacle for the crypto market.
Following the assassination of Hamas political leader Ismail Haniyeh, Iran is expected to start an all-out offensive against Israel in the next few hours.
BREAKING:Iran is expected to launch a large-scale attack on Israel within the next 72 hours. pic.twitter.com/K5VyBMxlMl
— Globe Eye News (@GlobeEyeNews) August 1, 2024
Other Middle Eastern nations such as Yemen, Turkiye and Qatar have also condemned Israeli actions, threatening to join the war against it. Meanwhile, the United States has confirmed that it would help Israel defend itself against any retaliatory attacks, even deploying 12 warships in the Middle East.
Unsurprisingly, crypto prices and equities are taking a beating, with the Bitcoin price trading as low as $63,300 today.
Top meme coins could face an extended period of decline as they break down below crucial support levels.
For instance, experts highlight that Dogwifhat has locked in a bearish divergence from its 99-day Simple Moving Average, which could push it down to the June lows of $1.60.
The top Solana meme coin is currently trading at $1.96, which indicates that another it could see another 18% decline in the coming days.
$WIF (per request)Notable deviation above the 99smaWe've seen many alt coins retest the lows after similar deviation.Needs to reclaim 99sma resistance to reassess for upside potential pic.twitter.com/tUr5CNBueE
— Nebraskangooner (@Nebraskangooner) July 30, 2024
Popular crypto trader Bluntz (@Bluntz_Capital) has also shifted from its bullish stance on WIF. He had earlier called $1.60 as the local bottom for the token but now sees the meme coin trade down as low as $1 in the coming days.
Meanwhile, experts are also bearish on Pepe, which is already down 8% today.
Crypto analyst CrediBull Crypto (@CredibleCrypto) believes that Pepe could see another 50% decline from its current price, especially if the geopolitical risks continue to rise.
Are New Meme Coins A Better Investment?
Large-cap meme coins could see an extended period of decline. On the contrary, new meme tokens show little correlation to the broader market sentiment, owing to their low market capitalization.
For instance, a new meme coin - PlayDoge (PLAY) - is in high demand from smart money investors, having already raised nearly $6 million in its presale.
Memes and GameFi are two of the in-demand sectors during this bull market and PlayDoge’s combination of both has certainly impressed investors, as has the plethora of rewards in store.
For instance, gamers can earn free crypto through PlayDoge’s Tamagotchi-style P2E game. Additionally, PLAY holders can stake their coins and earn staking rewards, both on Ethereum and BNB Smart Chain.
Owing to its strong early demand and exciting utilities, experts believe that PLAY could offer up to 100x returns after its launch.
Similarly, experts are bullish on Pepe Unchained (PEPU), a new frog-themed meme coin that is being touted as a rival to Pepe.
Pepe Unchained is launching its own Layer-2 chain, aiming to deliver low trading costs and high staking rewards. This could be the perfect formula to attract retail investment into this new meme coin, something that most Ethereum meme coins fail to do.
Similar to PlayDoge, analysts believe that PEPU could see 50x to 100x growth after its IEO.
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