This year, the cryptocurrency market continued to capitalize and reached an incredible $2.67 trillion. Meme coins, as a new trend in digital currencies, are keeping up and show more than 600% positive average price change.
This area has already attracted $68.3 billion, and many investors refuse to believe in possible losses in the future. However, there are several meme coins to sell in April that require special care, as they can bring bankruptcy to inattentive holders.
Dogecoin (DOGE-USD)
When Billy Markus and Jackson Palmer created Dogecoin (DOGE-USD), they planned to show the world something fun and creative. The meme coin spent 7 years, traded at a price of a tenth of a cent, but 2020 showed the crypto industry’s sensitivity to hype. Then, the project depicting a Shiba Inu dog soared to the heavens, crossing the $0.6 mark.
DOGE was born at the end of 2013, and the following year, it introduced the Auxiliary Proof of Work (AuxPoW) mechanism. This fundamental and useful innovation did not make any significant positive changes to the coin value. Conversely, in 2014, Dogecoin experienced significant declines to $0.00011.
Yet, the hype of 2020 was not due to improvements in the project’s functioning or the optimization of payments with DOGE. Rather, the coin gained momentum due to viral videos on TikTok. Speculation heated the price of the token, which led to a 20-fold jump from the end of 2020 to September 2021.
Now, this token lags behind when it comes to the long-term perspective and the transition from bullish sentiment to crypto winter. The reason for this is the speculative nature of the price movement and the unlimited supply. The project allows the creation of 5 billion coins every year.
The crypto community does not consider DOGE as a long-term means of preserving value like other meme coins to sell in April. This month may see a reversal of the token’s upward trend. The price daily average addresses divergence, suggesting a potential mismatch of actual user activity and the price rising. The acceptance of the digital asset is not keeping up with the price, which may describe an upcoming sharp decline.
Bonk (BONK-USD)
The bear market of 2022 gave the world Bonk (BONK-USD). The original Bonk memes found a response in the crypto space and the token moved to the Solana network.
The project’s community remains loyal and active, but it is worth noting the power of this factor. Before the bull rally of 2023, the token’s price hadn’t demonstrated steady growth. And, only the hype in late 2023 pushed its price from $0.0000002 to $0.000037.
General market trends led to a rapid increase in the token value in December. In mid-2023, the market cap of BONK was below $10 million. Then, at the end of the year, it crossed the $1 billion mark. When the hype began to subside, these figures began to return, with a market cap losing hundreds of millions per month.
Tokens with longer histories have already demonstrated price chart movements similar to the current picture for Bonk. The pattern includes a rapid increase in trading volume and price, a sharp collapse, and then a steady decline until the next token-related event. The BONK indicators demonstrate the proximity of the zone when the coin will not bring profit to holders. At this point, speculators and profit-seekers leave the game, and the meme community cannot keep the price at the same high level.
Pepe (PEPE-USD)
A high place in the ranking by market capitalization usually indicates exceptional characteristics of a digital asset. In the case of Pepe (PEPE-USD) the 38th position can only emphasize the end of a successful period. The $3.5 billion mark is behind it, and the percentage of growth for the year has exceeded 15500%. But the coin is already showing the first signs of a pre-downturn.
One such sign is the recent problems in social media. In the absence of any other foundation for development, PEPE is focused on trends. Vulnerability to negative news in posts reveals the essence of the token, which is a colossus on clay feet.
On March 27, the market witnessed the transfer of 2.6 trillion PEPE to an unknown wallet. At that time, the transaction amount was more than $21 million, which excited the minority holders of the token. The price of the meme coin reacted with a decline, which was blocked by the activities of major players to support the price of PEPE.
From March 27 to March 28, the token dropped from $0.000008116 to $0.000007479. The drop of more than 7.8% in 2 days emphasizes the possibility of more significant price reductions in a short-term period.
The recent falls motivate investors to think about harvesting profits. Corrections after long gains are the norm, especially in the absence of utility that would stimulate holding PEPE. The project’s token holders can hedge against the high risks of a sharp collapse through hedging strategies.
On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
