The memecoin sector experienced a substantial setback as popular tokens such as SHIB, WIF, and PEPE underwent corrections following Bitcoin’s decline below $67,000. This abrupt halt in growth highlighted the sector’s vulnerability to market fluctuations, particularly due to its close correlation with Bitcoin. Despite their previous stability, SHIB, WIF, and PEPE recorded significant price drops, with WIF declining by 21.33%, SHIB by 12.50%, and PEPE by 19.23% in the last 24 hours.
The sentiment surrounding SHIB and PEPE remained relatively positive, as evidenced by an increase in positive comments compared to negative ones. However, WIF faced challenges in this aspect, with a notable decline in sentiment likely linked to its recent price drop. Not having its own ecosystem or community made WIF susceptible to market drawdowns, exposing it to increased vulnerability during such fluctuations. Despite maintaining a neutral stance towards WIF and SHIB, traders exhibited a bearish sentiment towards PEPE, with a growing percentage of short positions taken against the token in the past few hours.
Observers noted that the performance of memecoins on social media played a crucial role in their price movement, with WIF leading in social volume among the three tokens. For PEPE and SHIB to potentially recover in terms of price, they would need to enhance their popularity and attract more attention on social platforms. As WIF continued to capture market share and maintain high social activity, competition among memecoins to stay relevant could intensify, posing challenges for others in the sector.