Tuesday, October 3, 2023

Recent Memecoin Surge Suggests Worrying Outcome for Crypto Markets, According to Analytics Firm Santiment

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Crypto insights firm Santiment says that the recent outperformance of memecoins may be hinting at a coming correction for the digital asset markets.

In a new report, Santiment points out a relatively bullish performance of coins like Dogecoin (DOGE), Shiba Inu (SHIB), Apecoin (APE) and Pepe (PEPE).

“As the weekend kicks off, it’s not Bitcoin, Ethereum, or XRP gaining some much-needed market cap… it’s apparently the memecoins’ time to shine. Between Dogecoin, Shiba Inu, Apecoin, and Pepe, all are either at a week high against the price of Bitcoin… or very close to surpassing it.”

Source: Santiment

While a few other altcoins are doing somewhat well, Santiment says there appears to be a “coordinated effort” to push up the price of the memecoin sector. The firm warns that such a phenomenon is a sign of overheatedness in the crypto markets, which often marks short-term price tops.

“Historically, we need to be aware that surges from speculative assets that really only see minimal development activity (at best). This can often signal that the entire crypto market may be veering toward ‘overheated’ territory. When these four assets see isolated pumps, it is often associated with greed and/or boredom from the crowd. And these two behaviors often have adverse impacts on the markets.”

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Featured Image: Shutterstock/Fariza Abdurrazaq/MrArtHit

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