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WIF and FLOKI Prices Crash Over 50% in June – Exit Top 50 – Is the Memecoin Frenzy Over?

Last Updated June 24, 2024 9:32 AM
Valdrin Tahiri
Last Updated June 24, 2024 9:32 AM

Key Takeaways

  • WIF has declined since its all-time high in April, creating a lower high in May.
  • The FLOKI price has fallen over 50% since its all-time high price in June.
  • The memecoin basket has also decreased over 50%, falling to a 111-day low.

Memecoins captured the spotlight in the latter half of 2023 and the early months of 2024. New Solana-based memecoins like WIF and BONK took center stage with four-digit increases that led to new all-time highs in March. However, their prices started to tumble in April and, after a series of lower highs, their declines have intensified in June.

Due to this significant decline, WIF and FLOKI have been ousted from the top 50 cryptocurrencies, leaving SHIB, DOGE, and PEPE as the remaining memecoins in the top tier. After over 50% decreasses, investors are debating whether the memecoin craze has run its course, or if a rebound is imminent, potentially signaling the end of the correction.

Memecoins The Worst Performing Category in June

The memecoin basket was the best performer in the cryptocurrency sector during most of 2024. The trend started to show cracks in April, during the first crypto market correction this year. At the time, Layer-1s performed better, leading to the hypothesis that large cap cryptocurrencies fare better in corrections, while smaller, more speculative projects take center stage during booms.

This hypothesis has been strengthened further in the ongoing crypto market decline. In June, the basket of memecoins fell over 50%. No other category comes close, with the next biggest loser being Artificial Intelligence (AI) tokens at 31%.

Crypto Basket Performance
Custom Daily Chart | Credit: Valdrin Tahiri/TradingView

Additionally, Layer-1s (blue) have been the best performing category once more, falling only 11.58%. This adds further validation to the hypothesis that large cap cryptocurrencies hold up better in a correction, while speculative ones suffer the blunt of the losses.

Memecoin Individual Performance
Memecoin Chart | Credit: Valdrin Tahiri/TradingView

Due to this decline, the only memecoins in the top 50 are DOGE, SHIB , and PEPE. WIF has also been the worst performer from the six largest memecoins, followed by BONK. This decline was likely accentuated by Solana’s underperformance relative to Ethereum, since the other four memecoins analyzed are in the latter’s blockchain.

In Ethereum, Dogecoin, which is the largest memecoin has been the best performer in June, correcting by 25%. On the other side of the spectrum, FLOKI has performed the worst with a decline of nearly 40%.

When Will Memecoins Bottom?

The massive decreases of FLOKI and WIF have caused them to fall out of the top 50. However, the price action for both memecoins suggests they could reach a bottom soon. This price action is visible in the entire memecoin basket.

Since reaching an all-time high on March 31, the memecoin basket has fallen inside an A-B-C corrective structure. If so, it is currently in the C wave of this correction. Giving wave A:C an exactly 1:1 ratio leads to a low of $0.213.

Ongoing Correction
Memecoin Correction | Credit: TradingView

There is Fibonacci and price action support confluence at this level, created by the 0.786 Fibonacci retracement support level and the wick low support from March (green icon). So, despite their massive decline in June, it is possible memecoins will reach a bottom soon.

WIF Could Complete Correction Soon

The WIF price action is very similar to that of the entire memecoin basket. WIF reached its all-time high of $4.88 on March 31 and has fallen since. The increase was the culmination of a five-wave upward movement (white) that started in January.

If this count is accurate, WIF has corrected in an A-B-C structure (black) since. The correction took slightly longer than the upward movement, so it could come to an end soon.

Additionally, both the RSI and MACD have fallen to all-time lows, and the former is deep into oversold territory. While a bullish divergence in both will confirm the upward movement, the oversold readings also indicate the correction can end soon.

WIF Price Downward Movement
WIF/USDT Daily Chart | Credit: TradingView

Giving waves A:C a 1:1 ratio leads to a low of $1.10. This is very close to the 0786 Fibonacci retracement support level at $1.06, making it a likely level for a bottom. A breakout from the short-term descending resistance trend line will confirm the bottom is in.

FLOKI Price Plunges After All-Time High

The FLOKI price action is not identical to that of the memecoin basket nor WIF. The reason for this is that after its initial high in March, FLOKI reached a new all-time high price in June.

Then, it fell sharply. It is possible the decline is an A-B-C corrective structure. Since wave B went above the high of wave A, the correction is and irregular, flat correction. So, it has been contained inside an ascending parallel channel.

Currently, waves A:C have a nearly 1:1 ratio and FLOKI has almost reached the channel’s support trend line. So, this is a likely level for a bottom. Additionally, the daily RSI and MACD are both approaching their lows and the RSI is nearly in oversold territory.

FLOKI Price Correction
FLOKI/USDT Daily Chart | Credit: TradingView

As a result, a bounce at the channel’s support trend line will confirm FLOKI has bottomed. Alternatively, a breakdown will deepen the correction and can trigger another decline to $0.000092.

Memecoin Correction Could End Soon

Despite their extremely lackluster performance in June, the memecoin correction could come to an end soon. Their prices have declined sufficiently in both magnitude and length since their highs; hence the wave count suggests that a bottom is close.

The FLOKI price action could be closer to bottoming compared to WIF, since both parts of the decrease already have the same length. This holds true as long as the price does not close below its ascending parallel channel.

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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