- Altcoin market leverage dropped, signaling cautious investor sentiment; meme tokens saw sharp declines in price and trading activity.
- Bonk fell 2.81% to $0.00003862, with trading volume down 10.28%; key resistance at $0.00004000 is crucial for recovery.
- Dogecoin dropped 1.90% to $0.4065, trading sideways amid reduced activity; support at $0.3980–$0.4000 remains vital for stability.
The altcoin market experienced a significant downturn this week, with a noticeable decline in the open interest-to-market cap ratio. This metric, according to Kaiko data, highlights reduced leverage and trading activity, signaling growing caution among investors. Meme tokens, including Bonk (BONK), Dogwifhat (WIF), PEPE, and Dogecoin (DOGE), bore the brunt of this market shift.
Meme Tokens Struggle Amid Broader Market Weakness
Notably, Bonk (BONK) recorded a 2.81% price drop in the last 24 hours, trading at $0.00003862. Its market cap decreased by 2.77%, reaching $2.92 billion. Additionally, the token’s trading volume fell by 10.28% to $386.52 million.
Despite intermittent recoveries, BONK’s trend remained bearish, slipping from a recent peak of $0.0000397. The token faces resistance at $0.00004000 and $0.0000397, critical levels for potential bullish momentum.
Conversely, support at $0.00003800 and $0.00003770 may help prevent further declines. A break above $0.00004000 could hint at a reversal, while falling below $0.00003800 might deepen losses.
Additionally, Dogwifhat (WIF) saw an even sharper decline, with its price dropping 5.83% to $2.91. Its market cap mirrored this decline, while trading volume fell by 6.26%, totaling $498.96 million. After peaking at $3.08, WIF followed a steady downward trajectory, aligning with reduced leverage across the altcoin market.
More so, resistance at $3.08 and $3.00 remains crucial for recovery attempts, while support at $2.90 and $2.85 may provide stability. However, any dip below $2.85 could intensify selling pressure.
PEPE Displays Relative Resilience
Furthermore, PEPE token demonstrated relative strength compared to its counterparts, with only a 1.02% price decline to $0.0000233. Despite the downturn, the token showed gradual upward attempts after hitting lower lows, suggesting less impact from declining leverage. PEPE’s support levels at $0.0000230 and $0.0000233 are vital for sustaining its recovery.
However, resistance at $0.0000245 and $0.0000248 could impede further gains. Holding above $0.0000230 may signal bullish consolidation, potentially supporting its ongoing recovery.
Dogecoin Consolidates Amid Reduced Activity
Moreover, Dogecoin (DOGE) traded at $0.4065, marking a 1.90% decline over the past day. Despite a brief spike to $0.4137, the token faced resistance, resulting in sideways trading. The consolidation reflects the overall decline in leverage and trading volume across the altcoin market.
Key support lies between $0.3980 and $0.4000, with additional support at $0.4050. Resistance at $0.4137 and $0.4100 continues to limit upward movement. Increased trading activity is essential to break the current range and sustain any upward momentum.
