Solana meme coins see steep correction as bull market enthusiasm fizzles out

Crypto traders’ belief in a bull market has reduced significantly since October 2023.
Santiment analysts say that less long-term optimism among market participants shouldn’t necessarily weigh on prices.
Solana-based meme coins Dogwifhat, Bonk, Slerf or Ponke see steep corrections on Thursday.

The rally in Solana-based meme coins is losing momentum on Thursday after these tokens have yielded massive gains for holders in the past week. The recent market-wide correction in crypto, with Bitcoin declining below the $70,000 level, has driven meme coin prices lower on the daily time frame.

On-chain analysts at Santiment argue that “bull market” enthusiasm may have fizzled out, but that crypto prices are likely to stay higher for longer as trader optimism persists.

Solana meme coin party ends abruptly

Bitcoin price plunged close to $66,000 on Thursday. The correction ushered a broad market decline, with prices of speculative assets like meme coins leading the correction. Solana-based meme coins yielded nearly double-digit gains in the last seven days.

Solana-based meme coins suffer price decline.

While the meme coin party may have ended abruptly, on-chain analysts at crypto intelligence tracker Santiment believe that the crypto market is still in a bull run. The enthusiasm among market participants seems to have thinned out since October, however, analysts state that less long-term optimism is not typically a warning sign for prices.

The following chart from Santiment shows how the mention of “bull market” has declined to 450 from its peak of 2,100 observed in February. This is one of the metrics that the analysts take into account when measuring optimism among traders.

Bull market enthusiasm fades

While traders may be less optimistic following the recent price correction in Bitcoin and altcoins, historically less long-term optimism has increased the probability of continued price rise in cryptocurrencies. Santiment analysts expect the same in the current market cycle.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram