- Memecoins experienced significant losses, with POPCAT and WIF dropping over 41% and BOME 36%, while DOGE and SHIB saw smaller declines.
- Analysts advise against going all-in on memecoins, recommending close monitoring of coins showing strong post-crash recoveries.
- Predictions suggest no immediate US market meltdown; a moderate rate cut is expected in September despite ongoing market volatility.
Memecoins are some of the hardest hit by the recent crypto crash. Major memecoins like POPCAT and WIF lost over 41% on the weekly timeframe while BOME lost 36% in the same time. More established coins like DOGE and SHIB suffered fewer losses, at 23% and 17% respectively.
Related: Crypto Market Turmoil: Heavy Losses Across the Board, Analysts Weigh In
With the original memecoin, Dogecoin, slipping below the 10-cent mark for the first time since February, the question is: should you go all-in on memecoins now, expecting 10x or greater gains?
Analysts: Rebound Likely to See Strong Performance of Well-Known Projects
Well, this is not investment advice, but maybe it’s not the best decision to ape all into memecoins, at least that’s according to Ran Neuner.
So, what can you do? According to Miles Deutscher, you should observe and take note. He says, monitor coins “which are recovering the strongest on this bounce”, including their distance from recent highs (not necessarily all-time highs), as these could be the strongest performers in the event of another retrace.
Deutscher also says successful investing hinges on three key principles: strong fundamental belief in the asset you’re investing in, defined criteria for initiating a position, and specific conditions for when to exit, which is “essential for effective risk management”.
Fellow analyst Michaël van de Poppe adds that he believes especially the DeFi narrative will outperform most crypto assets. Van de Poppe has several well-known assets on his shopping list, such as ETH, AAVE, TIA, TAO and a few more.
Neuner Predicts Rate Cuts but No US Market Meltdown
Back to the Crypto Banter host, Neuner says the worst of the market downturn appears to have passed, particularly for the Nikkei, despite the significant drop.
According to Neuner, the US market will stabilise somewhat, with the Nasdaq closing better than a 2.5% drop.
Related: Morgan Stanley to Offer Clients Spot Bitcoin ETFs IBIT and FBTC
Despite the volatility, and despite some calls for an emergency Fed meeting, he says there will not be one. Neuner adds a rate cut will come in September, though it will not be as substantial as 50 basis points.
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