Meme coins are facing a steep sell-off across the board as Bitcoin remains stable.
Meme coins have taken a sharp hit in the past 24 hours, with Dogwifhat (WIF), Ai16z (AI16Z), and Bonk (BONK) leading the declines among the sector’s largest tokens, according to Coinmarketcap. However, Bitcoin (BTC) holds steady, down by just 0.63% and 0.93% on the daily and weekly timeframes respectively. This divergence highlights a common trend: Speculative assets like meme coins thrive on momentum and hype. When BTC is stable, trading volume and liquidity in meme coins often dry up, leading to price declines.
Ai16z
The Ai16z’s daily chart indicates a prevailing bearish trend, with the price currently standing at $0.32, below the 7-day simple moving average at $0.34.
Looking at structure levels, the immediate area of interest is the support level at around $0.30 price point, which has been tested multiple times. If this support breaks, the next critical zone lies between $0.27 and $0.28, an area where the price previously consolidated before attempting a short-lived upward move.
The $0.40 level stands as the next key resistance. This price point has previously rejected upward moves, indicating that sellers remain active there. A more significant bullish shift would require a breakout above the $0.45 – $0.50 range, an area that marked the beginning of the current downtrend.
Dogwifhat
Similarly, the daily price chart for Dogwifhat shows a prevailing downtrend, with the 7-day SMA sloping downward. As of now, WIF is trading at $0.60, which is below the 7-day SMA of $0.64. If the price can move past this level, the next resistance lies in the $0.70 – $0.75 range.
Support is holding around $0.60, a level that has been tested multiple times. If this level fails, a further decline toward $0.55 is possible.
For a potential reversal, WIF would need to break and sustain above the 7-day SMA while reclaiming the $0.70 – $0.75 zone. Until that happens, the bears remain in control, and the risk of further declines persists.
Bonk
BONK is trading at $0.00001451, which is below the 7-day SMA of $0.00001557. Despite brief periods of sideways consolidation, especially in mid-February, the price has struggled to break above the 7-day SMA, which means that sellers remain in control.
In terms of structure levels, the most immediate one is around $0.00001400, a level that has been tested multiple times. If the price fails to hold above this support, further downside movement could push it toward the $0.00001250 – $0.00001300 range, where historical price action suggests some stability.
The $0.00001750 – $0.00001800 region represents a significant resistance zone where BONK previously faced strong selling pressure. A breakout above this level would indicate a potential trend reversal and shift the sentiment toward a more neutral or bullish outlook.
The sharp decline in meme coin prices is largely a reflection of the broader crypto market downturn, with almost all altcoins bleeding on the daily time frame. However, it’s also true that the meme coin sector has been hit particularly hard by recent events, most notably the Libra scandal.
“Sentiment now is probably as low, or even lower than during the FTX collapse,” said Nic Puckrin, founder of The Coin Bureau.
Even before the recent scandal, analysts had already begun commenting on the end of the meme coin era. For example, Ki Young Ju, CEO of CryptoQuant, said that “Eventually, the market will enter the trough of disillusionment, followed by years of gradual maturation.”
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