Memecoin mayhem? Solana’s WIF, BONK, POPCAT see sharp declines

  • While prices decreased, a larger part of traders aligned with long positions.
  • BONK and POPCAT hint at a recovery, and might move first before WIF.

Solana-based memecoins including dogwifhat [WIF], Bonk [BONK], and Popcat [POPCAT]  have all taken a breather on their rallies. At press time, WIF had 9.92% of its value lost in the last 24 hours.

For BONK, it was a 7.49% decrease while POPCAT’s price fell by 11.31%, suggesting that selling pressure had kicked in. This performance was in contrast to the signals the memecoins showed a few days ago.

For example, POPCAT jumped to $0.55 on the 29th of May. WIF hit $4.10 on the same day while BONK rallied to $0.000043.

Memecoins face a fight with skeptics

AMBCrypto’s findings showed that these previous hikes have sparked discussions that the tokens were about to surpass their all-time highs. But it was not to be.

Furthermore, we considered examining the sentiment around each project. As of this writing,  WIF’s Weighted Sentiment had dropped to -0.186.

This means that there were more negative comments about the cryptocurrency than positive ones. As such, it could be challenging for the token to experience a superb wave of demand in the short term.

WIF, BONK, and POPCAT sentiment declines

Source: Santiment

In POPCAT’s case, the metric was also in the negative region at -0.642. BONK was also not left out of a fall in optimistic perception but compared to the other two, the sentiment stayed above the negative territory.

Despite the unimpressive price action, traders in the derivatives market seem to be confident in a rebound. AMBCrypto got proof of this after analyzing the Long/Short ratio provided by Coinglass.

No giving up on the predictions

The Long/Short ratio is a measure of investors’ expectations. If the value is above 1, it means that there are more long positions than shorts. Therefore, traders are bullish on the price action.

On the other hand, a reading below 1 indicates a dominance of shorts and a bearish forecast. Using BONK as a focal point, the reading of the indicator was 1.03 at press time, confirming the optimistic view in the market.

BONK traders are placing bullish bets on the cryptocurrencyBONK traders are placing bullish bets on the cryptocurrency

Source: Coinglass

A quick look at the indicator with WIF and POPCAT suggest a similar perception. In addition to the metrics above, AMBCrypto evaluated the social dominance.

This metric tracks the rate of discussions about a cryptocurrency. At press time, WIF’s social dominance fell to 0.37%, indicating that conversation held about the token had decreased.

However, it was not the same case for BONK and POPCAT. While POPCAT’s social dominance jumped to 1.389%, BONK was at 1.481%.In terms of the price, this metric can show how quick the value can recover.

BONK, WIF and POPCAT show signs of recoveryBONK, WIF and POPCAT show signs of recovery

Source: Santiment

Realistic or not, here’s BONK’s market cap in WIF terms

From the indications above, it seemed that BONK and POPCAT might be the first movers when respite comes for the memecoins.

This is not to say WIF won’t join the potential revival. However, it might come after the other two must have led the way.

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