Meme Coin Crypto Prices Endure Correction, Traders Hunt Presales For Value

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Meme coin prices are witnessing a broad-based correction alongside Bitcoin following today’s CPI print. According to data from CoinGecko, the meme crypto asset class declined by 11% on Wednesday and fell to $60.3 billion at press time.

Top meme tokens such as Shiba Inu, Pepe and Floki are all witnessing heavy corrections, while Solana meme coins such as Dogwifhat, Book of Meme and Bonk are down double digits on the weekly timeframe. 

Despite the hype surrounding Doge Day, the Dogecoin price has also squandered all its gains from last month, falling below a crucial support level. 

The decline in large-cap meme coins has pushed some crypto traders to hunt for low-caps and presale tokens. New meme coins have been in high demand during the 2024 crypto bull run, owing to their relatively lower valuation and weak correlation with the broader market outlook. 

Meme Coin Crypto Prices Decline – Why Is Crypto Crashing?

The meme coin prices correction is in line with the broader crypto market crash: 

Dogecoin vs Bitcoin relative performance, via CoinMarketCap

After trading as high as $72,600 earlier this week, the Bitcoin price failed to break its range-bound price action and fell to $67,600 on Wednesday. Increasing macroeconomic risks are largely responsible for the bearish trend in BTC.

The Consumer Price Index (CPI) data released on Wednesday by the US Bureau of Labor Statistics once again reveals hotter-than-expected inflation levels in the US economy. Both the US CPI YoY and Core CPI YoY indicators underperformed economists’ expectations.

The cryptocurrency market – similar to the equities market – is strongly correlated to global liquidity. Despite the ETF mania, the crypto bull run in the 2024 Q1 was largely due to the market expectation that the US Federal Reserve will adopt quantitative easing. Indeed, the market initially expected 7 interest rate cuts in 2024.

After a series of bad inflation data prints, experts and Fed officials are now considering the possibility of no rate cuts this year, a decidedly bearish scenario for BTC and other large-caps.

Bitcoin’s depreciation has created a strong selling pressure on meme coins. 

For instance, the Dogecoin price appeared poised for a major breakout after closing the month of March above the crucial $0.19 support level. Indeed, Doge nearly doubled in value last month, buoyed by Elon Musk’s support and the news regarding Coinbase Derivatives launching Dogecoin Futures trading. 

A few bullish analysts were even suggesting that Dogecoin could hit a new all-time high in April. However, the Dogecoin price has now fallen below the $0.19 support, trading at $0.183 at press time. 

Could Dogecoin, Other Meme Coins Bounce Back?

Experts are not panicking about the meme crypto prices correction just yet. 

For instance, the Dogecoin price continues to trade at $0.18, just below the crucial $0.19 – $0.20 support range. A daily or weekly close above it will validate the aforementioned bullish scenario again. 

Similarly, analysts believe that other popular meme coins such as Pepe, Shiba Inu and Bonk will hit new all-time highs. 

However, the large-cap meme coins remain strongly correlated to Bitcoin and the broader market outlook. Smart-money traders even treat meme coins as beta bets on their respective blockchains. 

In the scenario that the US central bank adopts a hawkish monetary policy, Dogecoin and other top meme coins could witness heavier corrections.

Furthermore, their relatively higher valuation means they can deliver limited returns, which might make them less attractive to investors searching for 10x – 100x returns. These traders are eyeing new meme coins and the best presale cryptocurrencies to invest in. 

New Presale Meme Coins Surge In Demand, Traders Project High Returns

Low-cap new meme tokens have already delivered significant returns during this crypto bull run. 

For instance, data from Lookonchain reveals that a popular trader Larp von Trier turned just $353 into $8.39 million by hunting low-cap gems. 

Many other retail investors have become crypto millionaires just from holding Ethereum and Solana meme coins for the post-ICO pump. 

Consequently, presale meme coin projects are in significantly high demand.

Dogeverse – a new low-cap alternative to Dogecoin – has raised $1 million in less than two days of opening its presale.

It is a multi-chain token and claims to be the world’s first meme cryptocurrency set to be available on 6 different blockchain ecosystems – Ethereum, Solana, Polygon, Avalanche, BNB Smart Chain and Base.

Considering that Dogeverse in already live on Ethereum, it is offering on-chain staking as well, currently at a reward rate of over 1000% annualized.

Owing to the speculation surrounding Doge Day, YouTube trading experts are backing Dogeverse to continue witnessing high demand in April.

Similarly, Solana meme coins are still dominating the meme coin rally.

Following in the footsteps of Slerf, a new sloth-inspired token Slothana is witnessing high demand in its presale.

$SLOTH has raised over $10 million in its ICO in just over a week, despite the pullback in crypto prices. 

Popular crypto YouTube channel 99Bitcoins and other crypto influencers believe that Slothana could be the next big Solana meme coin to watch.