Memecoins' fortune revealed

Reading time: 5 minutes

Bitcoin's price correction sparks concern among investors: Will BTC hit $60k?

Key points:

  • Bitcoin has been following a historical pattern in the buildup to the 2024 halving.

  • The ‘Pre-Halving Retrace’ phase may make traders see immense volatility.

News - Bitcoin has experienced multiple price corrections recently, dropping below $65,000. While this may seem concerning, analysts believe it could be part of a historical pattern leading up to Bitcoin's next halving event.

BTC’s price fell over 12% in the last week and was trading at $64,000, at the time of writing. Social metrics suggest dominance of bearish sentiment.

Is Bitcoin following a historical pattern? Analysts at Rekt Capital suggest BTC is mirroring a historical price trend before halving events. An initial pre-halving rally phase recently pushed BTC to an all-time high. However, a pre-halving retrace phase is now expected, potentially leading to further price drops.

Rekt Capital further predicts a potential 20% to 38% price drop, bringing BTC near $60,000. CryptoQuant data reveals high exchange deposits indicating selling pressure. SOPR and Binary CDD metrics further suggest strong selling activity.

In conclusion - AMBCrypto's analysis of the liquidation heatmap suggests support near $64,000. A price rebound is possible if BTC finds support at this level. A drop below $64,000 could increase the chances of BTC reaching $60,000.

U.S. dominates the AI token race, UK, Turkey follow suit

Key points:

  • The United States has shown the most interest in AI tokens, with 19% of the global press traffic.

  • The United Kingdom came in second with 9% global interest, while Turkey generated 6.5% interest.

News - AI tokens are the new craze that has taken over the crypto sector. With OpenAI, Worldcoin, and now Sora changing the way we view the world, there is good reason why 2024 could be considered the year of AI tokens.

The United States spearheaded global interest in the AI coin narrative, generating nearly 19% of worldwide web traffic for the top AI coins. When it came to the Southeast nations, Philippines led the pack with a 2.8% share in global interest, while Netherlands ranked first in the European Union with an impressive 5.6% global share, just trailing behind the third-largest Turkey.

Memecoins and AI tokens - Countries that embraced AI tokens this year also jumped on the memecoins’ bandwagon when the latter saw a rise. This includes India, Australia, Canada, and the Philippines. It can be concluded - these countries have a good appetite to embrace changing crypto trends more than others.

AI tokens to monitor - With AI tokens capturing attention this year, Bittensor (TAO), Render (RNDR), and Fetch.ai (FET) have taken the lead. Other tokens that have made a mark in this space include SingularityNET (AGIX), Ocean Protocol (OCEAN), Arkham (ARKM).

Surprisingly, 10 out of the top 25 AI tokens have the moniker “AI“ in their names. This includes DeepFakeAI (FAKEAI), PAAL AI (PAAL), and Sleepless AI (AI).

Investors turn their attention away from PEPE, BONK, and WIF

Key points:

  • As memecoin traders resort to profit-taking, PEPE, BONK, and WIF declined majorly in the last seven hours.

  • However, eagle-eyes traders can use the opportunity to reap more benefits.

News - Bitcoin’ retracement has caused major fallout in the altcoin market, and memecoins have borne the brunt. Notably, WIF, BONK, and PEPE, three memecoins that had given investors much to celebrate in the last week, have plunged massively.

However, WIF fared the best here, as its price fell by only 6.12% in the last seven days. But BONK and PEPE drew the short end of the stick. The former fell by 25.33% in the last seven days, while PEPE declined by 23.46% in the same period.

Time to buy? As per AMBCrypto’s analysis, Social Dominance of all three memecoins had witnessed a decline. WIF’s dominance was down to 0.451%, while BONK had decreased to 0.258%. PEPE was not left out, as it saw a decline of 0.795%.

But should the volume continue to rise and the price continue to decrease, profit-taking will not be so easy. So, investors will have to wait a while before selling.

But nonetheless, BONK’s state looked much better than its contemporaries, as its volume had already started to stagnate. So, there is a high possibility that BONK bounces first.

As traders wait for FOMC interest rates, crypto market sees $670M in liquidations

Key points:

  • As the crypto market retraced majorly, investors started selling, resulting in massive liquidations across the board.

  • As Bitcoin inches closer to $60k, Ethereum may plunge beyond $3k.

News - The last 24 hours saw over $670 million in crypto liquidations. This included $500 million in long positions and $170 million in short positions. This liquidation event was formidable, considering the upcoming FOMC meeting. As interest rates will likely remain unchanged, market sentiment around crypto remains restrained.

Free-fall continues - The last few weeks have seen staggering liquidation levels. Notably, the $670 million liquidation event was the largest in the past two weeks. This sentiment has been felt across the broader market, which has experienced a loss of $600 billion since its $2.9 trillion high last week. During this time, not just Bitcoin, but altcoins and memecoins like Ethereum, Binance Coin, and Dogecoin have posted losses as well.

Connection between crypto and FOMC - FOMC meetings determine interest levels in the United States. If interest rates rise, investors stray away from cryptocurrencies and move towards TradFi, causing declines. On the other hand, lower interest rates invite more involvement in crypto.

Well, this time, interest rates will likely remain unchanged, and will remain within 5.25% to 5.5%.

Did you know?

  • There exist over 12,000 cryptocurrencies, some on centralized exchanges, while others are on DEXes and require their own wallets. However, the top 20 cryptocurrencies make up 87% of the crypto market cap.

  • Cryptocurrencies are favored due to their cryptographic algorithms, generally perceived to be unbreakable. However, quantum computers can easily break these encryption methods.

  • Every day, there are over 1.1 million Ethereum transactions, around 6 times more than Bitcoin on average. Its main use case is to conduct transactions on the Ethereum network itself. However, ETH is used for online gambling and sports betting too, due to its anonymity and transaction speeds.

Top 3 coins of the day

Stacks (STX)

Key points:

  • STX has shown high volatility on the four-hour charts, raising hopes of higher gains.

  • The MACD and CMF were in line with this notion.

What you should know - STX’s price jumped from $2.78 to $2.94 in less than three hours, showing a propensity for additional gains in the future. This rise could have come on the back of Bitcoin’s latest rally, For the uninitiated, Stacks is a project that uses dApps to settle transactions on the Bitcoin blockchain. Thus, the king coin’s current importance in the crypto sphere could have had a major role in propelling STX forward. The token’s MACD and CMF readings also indicated that its price would rise, as they both showed north-bound movement. However, one cannot discount what will happen if Bitcoin’s price retraces further.

Jupiter (JUP)

Key points:

  • JUP has fallen from its 7-day high of $1.59.

  • Bearish pressure could continue for the foreseeable future.

What you should know - Jupiter (JUP) hit its 7-day high of $1.59 on the 18th of February on the back of the current altcoin rage. However, fortunes were quick to turn, and the token plummeted to $1.19 merely two days later. This drop was major for JUP, as it registered a decline of 15% in the last 24 hours. The token has become instrumental for new token launches in recent days. It has been driving DeFi traffic into Solana, raising the prices and utility for both platforms simultaneously. JUP’s MACD and CMF flagged concerning signals, however. The indicators showed a continued price decline, which is detrimental for users looking to capitalize on the altcoin’s gains.

Ethereum (ETH)

Key points:

  • Ethereum's rise to $4K seems to have been curtailed indefinitely.

  • As bears continue circulating around ETH, investors fear a fall to $3k and beyond.

What you should know - Ethereum dropped 20% over the last seven days. The altcoin touched $4k at the start of the week, but plunged soon thereafter amidst profit-taking activities. Since ETH’s price is notorious for remaining stagnant, it’s not surprising to witness how investors reacted. When it comes to indicators, ETH’s MACD displayed a bearish crossover. This showed that the short-term sellers were gaining control of the market. However, the CMF turned bullish, which indicated that more money was flowing into the market. So, one could infer that ETH investors have started to buy the dip.

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