- Unhashed Newsletter
- Posts
- Memecoin hype dying?
Memecoin hype dying?
Reading time: 5 minutes
Ethereum's price falls to $2.6K, but bullish metrics ignite recovery hopes
Key points:
Ether has dropped 13% since early August, but onchain indicators suggest a potential bottom.
The taker buy-sell ratio has turned positive, indicating increased buyer activity.
News - ETH has seen a 13% decline from its August peak, dipping below the crucial $3,000 level. However, recent on-chain data is hinting at a potential turnaround.
CryptoQuant analyst Burak Kesmeci has highlighted two key indicators: the taker buy-sell ratio and open interest (OI). The taker buy-sell ratio, which measures the balance between buyers and sellers on exchanges, has recently tilted in favor of buyers.
Significance of OI increase - OI, representing the total value of outstanding options contracts, has seen a notable increase. Historically, a surge in OI has often preceded market corrections.
Given the significant OI levels reached in March and June before previous price drops, Kesmeci suggests the current OI increase could signal the end of the current correction.
Despite the launch of highly anticipated Ether ETFs in the US, Ether’s price has faced downward pressure. Net outflows from these ETFs have contributed to the selling pressure, mirroring the initial performance of Bitcoin ETFs.
Long-term CryptoPunk holder sells NFT for a massive loss amid market downturn
Key points:
Record-breaking CryptoPunk transferred for an undisclosed amount.
The NFT market is experiencing a significant decline.
News - The NFT market continues to face challenges as evidenced by the recent transfer of the most expensive CryptoPunk ever sold.
Deepak Thapliyal, who acquired CryptoPunk #5822 for a staggering $23.7 million in 2022, has parted ways with the coveted digital collectible.
While Thapliyal expressed farewell wishes on social media, the sale price remains undisclosed. Given the current NFT market downturn, speculation has arisen that the investor may have incurred significant losses.
What’s more? The broader NFT market has indeed experienced a considerable slowdown. Sales volumes have plummeted by 45% in the second quarter of 2024, with July marking the lowest monthly sales since November 2023.
This decline is reflected in the lackluster performance of a recent Sotheby's auction featuring a CryptoPunk and a Beeple piece.
The auction, touted as a significant event, has garnered minimal interest, with a single bid currently standing at a fraction of the estimated value.
Solana memecoin trading drops 80% as market shows signs of cooling off
Key points:
Memecoin market faces renewed criticism.
Data suggests most pump.fun users lost money on memecoin investments.
News - Solana-based memecoins are facing a harsh reality check as trading volumes experience a dramatic decline. This follows growing criticism from analysts who question the long-term viability of these joke-themed tokens.
Data engineer Mike Kremer is the latest to join the chorus of skeptics, calling memecoins the most destructive crypto trend since 2017. He argues that unlike past speculative bubbles, memecoins offer no lasting value.
More details - Further bolstering these concerns is the recent performance of Solana memecoin markets. Trading volume has plummeted by a staggering 80% in just the past two weeks. This significant drop suggests waning investor interest in these assets.
Adding fuel to the fire, a new report from CoinShares reveals a record $39 million outflow from Solana exchange-traded products (ETPs) last week. This potential investor shift further underscores the cooling sentiment toward Solana memecoins.
The once-booming memecoin market appears to be losing steam. Whether this is a temporary correction or a sign of a lasting trend remains to be seen.
ADA out of top ten: Tron’s 14% rise pushes Cardano down the list
Key points:
ADA's price has increased modestly compared to TRX's significant gains.
On-chain metrics indicate a weakening market for ADA.
News - Cardano has been ousted from the cryptocurrency market's top ten by Tron, marking a significant shift in the industry's landscape. While TRX has seen a 14% surge, ADA has struggled to maintain its position, with a modest 2% gain over the past week.
The broader cryptocurrency market has also experienced a downturn, with the overall market capitalization dropping by 2%. Cardano's decline is mirrored by this broader trend.
On-chain data further highlights ADA's weakening market position. The price-daily active address (DAA) divergence, a metric comparing price fluctuations to network activity, has plummeted to its lowest point in over three months. This suggests a disconnect between ADA's price and its underlying network usage.
Despite a recent price increase, the ratio of profitable to loss-making ADA transactions has reached a peak, indicating potential profit-taking activity.
These factors combined paint a challenging picture for Cardano as it seeks to regain its position among the top cryptocurrencies.
More stories from the crypto ecosystem
Did you know?
Before China’s crackdown on cryptocurrencies, the country used to account for a whopping 65% of the global crypto miners. This was as of May 2021. But by August of the same year, the strict actions forced China’s share of the global hashrate to zero.
In 2024, the United States leads the global Bitcoin mining industry with over 35% of the network's hash rate. Abundant renewable energy in regions like Texas and favorable regulations are the key factors driving US dominance in Bitcoin mining.
Central banks around the world are exploring the issuance of their digital currencies, potentially paving the way for a hybrid financial future where traditional and digital currencies coexist.
Top 3 coins of the day
Polygon (MATIC)
Key points:
At publication time, MATIC was trading at $0.4395.
Its long-term market structure remained bearish.
What you should know - Polygon is currently facing a challenging environment, as evidenced by the formation of lower lows on the daily chart. The near-term resistance level at $0.50 is acting as a significant hurdle for the bulls, and the price is struggling to break through. MATIC is currently trading around $0.44, and the RSI is at 48, suggesting a neutral momentum with no clear direction. The resistance level around $0.50-$0.60 is crucial; a successful break above this range could lead to a recovery toward $0.70. However, failure to surpass this resistance might see the price continue to struggle, potentially testing lower support levels.
Aave (AAVE)
Key points:
AAVE increased by 34% in the last week.
It was trading at $128.97, at press time.
What you should know - AAVE has shown a strong upward momentum, gaining approximately 40.66% from its mid-term support level around $90.96. The price has now approached a key resistance level at $141.52, which has historically acted as a significant barrier. A breakout above this resistance could signal further bullish momentum, potentially leading to higher highs. However, if the price fails to break through this resistance, we might see a pullback toward the support level around $120 or even the mid-term support at $90.96. The Awesome Oscillator (AO) is showing positive momentum, supporting the current bullish trend.
THORChain (RUNE)
Key points:
RUNE increased by 22.67% in the past week.
It was trading at $3.96, at press time.
What you should know - The chart for RUNE/USDT shows a potential reversal from a prolonged downtrend. The price has been moving within a descending channel but is now testing the upper boundary, indicating a possible breakout. If RUNE breaks above this resistance, it could signal the start of a new bullish phase. The Choppiness Index (CHOP) indicates that the market has been choppy, but a decisive breakout could bring clarity and direction. Additionally, the Chaikin Money Flow (CMF) is near neutral, suggesting that there isn't significant selling pressure, which supports the possibility of an upward move.
How was today's newsletter? |