Memecoin falls in temperature, BONK, FARTCOIN, PENGU, and WIF have notably decreased.

The memecoin market panorama recorded a 5.59% plunge across the segment at the time of writing, reflecting widespread pessimism in the investment community. Notably, the top four names in terms of capitalization – BONK, FARTCOIN, PENGU and WIF – became the deepest decliners, showing the serious impact of the sell-off.

In light of this negative development, Bitcoin Magazine quickly conducted an analysis to clarify the factors behind the strong correction in the memecoin market, while also assessing the prospects for recovery as well as the potential risks of this highly speculative asset class.

Weak market performance and altcoin impact on memecoin

The level of interest in memecoin has significantly decreased compared to last month, reflecting a marked change in investor sentiment.

According to industry performance data provided by Artemis — a platform that tracks market segments based on weighted averages — memecoin has recently experienced a significant decline. Having previously recorded an impressive growth of 17.6% last month and ranking sixth in performance, this segment is now gradually falling behind.

! Source: ArtemisOver the past 7 days, the memecoin has risen by less than 2%, and it's worth noting that much of this increase occurred in the last 24 hours — a signal that the inflow to this market is running out. Low liquidity is directly dragging down the performance of memecoins.

In fact, deeper analyses indicate that this decline is closely related to the strong shift of capital into the Bitcoin ecosystem. Meanwhile, the Altcoin Index — representing the level of capital flow into non-Bitcoin tokens — is clearly weakening.

! meme-coin-ha-nhietSource: CoinMarketCapSpecifically, the Altcoin Index is currently at 26, indicating that the attractiveness of altcoins to investors is declining. On the contrary, Bitcoin continues to maintain its traction, which explains why the price of BTC remains firmly above the $100,000 level, despite the slowdown of the rest of the cryptocurrency market.

What will the upcoming performance of these memecoins be like?

Bitcoin Magazine conducted an in-depth analysis of each token in the heaviest loss group to determine whether these assets will continue to plummet or are preparing for a strong recovery.

BONK — Two scenarios can occur

Currently, the memecoin BONK is trading around a gradually increasing support line — a technical pattern that often plays a crucial role in determining the next direction of the price.

! meme-coin-ha-nhietDaily BONK/USDT Chart | Source: TradingViewIn a positive scenario, price history shows that every time BONK touches this support line, the buying force increases sharply, helping the price bounce noticeably. This phenomenon has repeated three times, and if the pattern continues to take effect, another rally may be forming.

However, if the bears dominate and the price breaks through this support line, the upward trend could quickly reverse. In that case, BONK risks plummeting to the price area of $0.00001405 — which previously acted as a support zone.

FARTCOIN — According to the bullish fractal model

After an impressive breakout in April, FARTCOIN continues to move according to a fractal model, consistently establishing higher peaks (HH) and higher lows (HL) – a characteristic signal of a sustainable uptrend. Notably, these higher lows all coincide with significant support areas that have previously triggered acceleration phases.

Daily chart of FARTCOIN/USDT | Source: TradingViewIf the current candle closes above this support level, it is very likely that FARTCOIN is preparing to form a new peak – opening up the next breakout opportunity for this memecoin.

PENGU — Weak trading activity

The performance of PENGU is currently quite weak at the time of writing. This memecoin seems to be in an accumulation phase around the lower support area of the symmetrical triangle pattern – a signal often seen before the market decides its next trend.

The daily PENGU/USDT chart | Source: TradingViewAlthough the price has approached the support area of the price channel, the reaction remains very subdued. Weak buying momentum has resulted in the chart not recording any significant bounce.

Typically, an isosceles triangle pattern can lead to a rapid breakout towards the $0.015 range, even reaching as far as the $0.017 mark. However, with the current price movement, PENGU is likely to continue oscillating and accumulating, and it may not be able to make a clear breakout in the short term.

WIF — Up slightly, but may plummet

The analysis of the Bollinger Band indicates that WIF may experience a slight recovery in the short term before entering a deep downtrend.

! Daily WIF/USDT Chart | Source: TradingViewAs of now, the WIF price has crossed the middle band and is getting close to the upper band (được marked in đỏ). If the upper band continues to act as resistance – as usual – the memecoin could face strong selling pressure, pushing the price down to $0.764, or a decline of more than 41%.

SN_Nour