- Memecoins that topped the gainers chart final week could also be due for a correction.
- In the meantime, low-cap belongings may expertise short-term positive aspects.
The second week of October kicked off with Bitcoin [BTC] breaking resistance to check the vital $64K stage. This marks a powerful rebound after final week’s dip, the place BTC briefly touched $58K.
Throughout that section, prime memecoins posted vital surges, with some even posting triple-digit positive aspects as capital flowed out of Bitcoin.
Nevertheless, many of those memecoins at the moment are buying and selling under their earlier peaks, signaling a possible distribution section as market focus returns to BTC.
As Bitcoin resurges and most high-cap memecoins face a stoop, AMBCrypto sees a sample that means that the market could also be nearing the ultimate leg of the memecoin craze reasonably than the beginning of a “super cycle.” If this development persists, a broader market cooldown may very well be imminent.
Prime memecoins are lagging behind
This chart signifies that the previous week marked a memecoin-led cycle, with 3 out of each 5 cash dominated by memes, every reaching over a 30% surge in only one week.
This second marked a shift; whereas low-cap altcoins often achieve traction when BTC hits a backside, merchants at the moment are flocking to high-cap memecoins for high-risk, high-reward alternatives.
In essence, the current BTC correction triggered a capital flight into these bigger tokens. Nevertheless, as merchants lock in earnings, funds could quickly circulate into smaller, low-cap memecoins, paying homage to altcoin surges seen after each Bitcoin prime.
Supply : CryptoQuant
SHIB, the second-largest memecoin with a market cap exceeding $10 billion, has constantly outperformed Bitcoin, posting increased every day positive aspects throughout every inexperienced candlestick on the every day worth chart.
This surge will be attributed to a method employed by merchants throughout Bitcoin pullbacks, as they shift their focus to accumulating high-cap memecoins. Notably, the previous week noticed web outflows of 58 billion SHIB from combination exchanges.
Nevertheless, with Bitcoin now breaking by way of a key resistance stage, renewed optimism has prompted these merchants to dump their holdings, leading to a surge of SHIB inflows totaling 62 billion.
In abstract, many prime memecoins could also be poised for a correction, as Bitcoin gears up for its subsequent parabolic ascent. Thus, the following memecoin supercycle may provoke as soon as BTC reaches an exhaustion level round $66K.
Low-cap tokens would possibly see a short-term surge
Usually, a rise in BTC worth boosts traders’ danger urge for food, prompting them to discover extra speculative belongings, together with lower-cap memecoins.
Regardless of their increased volatility, these belongings are considered as engaging choices for fast and substantial returns. Consequently, they might expertise a short-term surge in demand.
Supply : TradingView
One notable instance is Mom Iggy [MOTHER], a star Solana-based memecoin with a market cap of $85 million. The token has regained traction, surging over 5% within the final 24 hours to $0.83. This marks a big restoration from final week’s 10% plunge.
Practical or not, right here’s SHIB’s market cap in BTC’s phrases
Traditionally, an analogous sample occurred in the course of the first week cycle when BTC reached $62K, permitting MOTHER to check the $1 ceiling. If this development continues, the memecoin may very well be on the verge of a bullish reversal.
Total, the market is seeing main memecoins stagnate whereas smaller market-cap tokens surge, mirroring the development after BTC reaches a prime when capital shifts into smaller cash as bigger gamers distribute their holdings.
