Market hopes ignited briefly as the global crypto market capitalization climbed back above the $850 billion mark. However, with the larger market-facing consolidation after the short-term gains, the global crypto market cap stood at $886.75 billion, noting a 1.40% decrease over the last day.
While the recent gains were short-lived, CoinMarketCap data highlighted that on June 4, an inflow of $50 billion entered the market. These inflows reflected an over 5.78% climb in the last day, as the total crypto market volume made an over 50% increase over the same time.
At press time, BTC traded at $19,696, still struggling to make its way above the $20,000 mark. So, how can meme tokens perform with the market back in red?
Limited Gains for DOGE and SHIB
On July 1, data from blockchain analytics tool Santiment, highlighted that DOGE and SHIB had shown notable increases in network activity over the past few weeks. Even though on-chain data shows an uptick in address activity for meme coins DOGE and SHIB, price-wise, the picture doesn’t look too pretty.
DOGE and SHIB along with major altcoins, saw short-term pumps as the Fourth of July weekend drew to a close. Additionally, data from Cointrendz presented that despite the recent uptick in the network activity, Dogecoin, the leading meme token was not among the most mentioned coins on Twitter on July 6.
In the early hours of July 6, DOGE’s trading volume rose by 20%, reaching above $360 million. However, weakening price action and BTC’s return below the $20,000 mark have led to pullbacks for altcoins.
Thus, it looks like the larger market consolidation could wipe away DOGE and SHIB’s weekend gains. At press time, DOGE traded at $0.0687, gaining 1.12% price over the last day. On the other hand, SHIB traded at $0.00001048, noting 2.01% gains on its daily chart.
Meme Coin Summer?
Meme tokens tend to catch the market off guard, with surprise, by tracing sudden gains. More often than not, price pumps for meme tokens are dependent on social sentiment and trade volumes.
Everyone wishes to catch meme coin rallies that make investors gain in double or triple digits; however, looks anticipations of a meme coin summer could be met with disappointment.
In the past week, DOGE prices dipped from around $0.078 to $0.062. While the $0.062 support was defended vigorously by bulls, this defense spurred a short-term upward move back to the resistance at $0.068 and $0.070.