Bitcoin price is testing the 20-day EMA while meme coins face losses exceeding 50%. This is particularly not a good sign for SOL Coin. During the daily close, the BTC price, which was targeting $68,000, is now testing the support region below $66,000. So, what’s happening?
Cryptocurrencies on the Decline
Bitcoin‘s price has started to fall due to the anxiety surrounding the upcoming Fed meeting. If closures below $66,000 continue, the decline could deepen to $59,000. Moreover, volumes in the spot Bitcoin ETF channel are also weakening. If ETF investors who have been buying over the past few weeks join the selling, pre-halving concerns of losses up to 40% could be triggered.
Generally, there is a downward pressure on altcoins, for example, AVAX is targeting $50 with closures below $61.5 despite its recent jump. SOL Coin could fall to the $156 support level due to the double-digit losses in meme coins. If the excitement around Solana meme coins decreases in the coming hours, selling will gain momentum.
Meme Coins Suffering Losses
The group of altcoins that lost the most in the last 24 hours were meme coins. BOME Coin continues the day with a 50% loss. PEPE, WIF, FLOKI, BONK, MEME are experiencing losses over 15%. Below is a table showing the performance of the largest altcoins by market value over the last 1 and 24 hours.
Investors new to cryptocurrencies often turn to speculative assets for faster gains in the early stages of bull markets. Altcoins like LUNA, FTT, and meme coins are prime examples of this.
Additionally, new and speculative profit-seeking investors were encouraged by the 400-500 fold gains on the Solana network, driving up altcoins like BOME. Now we are seeing these cryptocurrencies retreat from their peaks just as quickly.
In the coming hours, an acceleration in selling is likely if the BTC price loses its support below $66,000. Although many meme coin investors have avoided selling at high profitability in the last few weeks, the uncertainty brought by the Fed is now accelerating the decline with profit-taking and stop-loss triggers.
