MemeCoins Plunge 7.5% as Trump Crypto Dinner Probe Sparks Panic

Memecoins experienced a significant decline today, with a 7.5% drop in market capitalization. This downturn was largely influenced by a 4.5% decrease in Bitcoin's value, which dragged down overall market sentiment. The meme sector's market cap fell sharply, while trading volumes also saw a notable decrease.

Several prominent memecoins were particularly hard hit. Pepe, Official Trump, dogwifhat, and Floki recorded price declines of 11%, 9%, 12.5%, and 9.5% respectively. This decline appears to be more than a temporary dip, as prices continue to fall and alter the overall market dynamics.

The primary reason behind this sharp decline in memecoins is the recent move by U.S. lawmakers, who urged the Justice Department to investigate President Donald Trump’s crypto dinner. This announcement triggered panic across the market, leading to a notable decline in major assets such as Bitcoin and Ethereum. The total liquidations exceeded $598 million, with the majority coming from long positions, indicating that bulls were hit the hardest.

Despite the price declines, there were significant outflows from exchanges, suggesting potential accumulation. Exchanges recorded outflows of $38.79 million in Pepe, $33.81 million in Official Trump, $17.19 million in dogwifhat, and $2.13 million in Floki. This substantial outflow indicates that investors might be accumulating these memecoins, which could lead to buying pressure and a potential upside rally.

Looking ahead, the future of these memecoins remains uncertain. Pepe, for instance, failed to hold its recent breakout above the key resistance level of $0.0000145 and fell below this level. If market sentiment remains unchanged, Pepe could see a further price decline of 14%, potentially reaching the $0.000012 level. The Official Trump memecoin has fallen to its key support area of $12.50, which has a history of price reversals. This level could see an upside rally of 20% in the coming days.

Dogwifhat has formed a bearish pin bar candlestick pattern at the resistance level, which has a history of price reversals. Given the current market sentiment, it seems likely that dogwifhat could see a price decline of 15% until it reaches the next support level at $0.93. Similarly, Floki has formed a bearish engulfing candlestick pattern at the top of the resistance level, indicating a potential price decline. If the current market sentiment remains unchanged, Floki could see a price decline of 12% until it reaches the next support.