BEARISH 📉 : Memecoin market cap drops 34% amid widespread fear

The recent downturn in the memecoin market may signal a turning point, according to Santiment. Widespread sentiment that meme tokens are "dead" could indicate a contrarian buying opportunity.

Memecoin market capitalization dropped 34% to $31 billion over the past month.
Bitcoin's decline added pressure on speculative tokens.
Large holders taking profits amplified downward moves.

Market Dynamics

Traditional flow from Bitcoin to riskier assets may not hold as institutions influence trading strategies.
Selective strength is more likely than a broad upswing in altcoins.

Notable declines included Dogecoin and PEPE, with significant volatility due to large position adjustments. The TRUMP token also saw sharp retracement post-launch.

High concentration of supply in few wallets rendered these projects vulnerable to rapid price changes.

Extreme pessimism often precedes rebounds, but this approach carries risks, as losses can deepen before stabilizing. Signs of market bottoming should be watched closely by contrarian traders.