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The meme coin market suffered a sharp decline this week as the broader cryptocurrency sector struggled. Over the past seven days, market leaders Dogecoin (DOGE) and Shiba Inu (SHIB) have fallen 5.68% and 11.85%, respectively. However, speculators are optimistic as the price of Sponge is up 8.05% this week and 192% this month.
Market decline affects meme coins
Following the approval of the Bitcoin ETF, a broad market decline impacted meme coins, with investors reducing their positions fearing further declines.
Dogecoin plummeted 6.42% the day before, 5.68% this week, and 16.94% this month. The downward movement was briefly halted on January 21 following the announcement of X Payments and possible DOGE integration.
However, Dogecoin’s rally was short-lived after it fell nearly 15%. Currently, Dogecoin is trading at $0.07737 with a market capitalization of $11 billion and a trading volume of $682 million.
DOGE is trading at a significant resistance point, which formed on the downside after a notable pump that began in the fourth quarter of 2023.
This is the sixth time Dogecoin has received support.
Analysts’ forecasts are mixed on whether Dogecoin will rebound or hit new lows. TradingView analyst SwallowPremium suspects that the downtrend will break and Dogecoin will head towards $0.05897.
However, Alfamooz disagrees and predicts that Dogecoin will reach $0.15 in the coming weeks.
Tokens moving to Shiba Inu have followed a similar trajectory, falling 6.22% in the last 24 hours, 10.97% this week, and 19.89% this month.
It is trading at $0.000008635 with a market capitalization of $5 billion and a 24-hour trading volume of $155 million.
However, SHIB is still weak.
Nonetheless, analysts remain bullish on Shiba Inu, with Weslad predicting a move towards $0.000059.
SHIB has been pulling back since the analyst published the chart idea on December 30th.
SHIB remains within the “repurchase zone” predetermined by analysts.
But while Shiba Inu and Dogecoin struggle to survive, Sponge is trending higher, adding 8% this week and 190% this month.
This bull run follows the announcement that Sponge will be connected to Sponge V2 with new utilities.
sponge soaring
Sponge launched in May 2023, around the same time as PepeCoin (PEPE), reaching a market capitalization of $100 million.
It has also secured listings on 10 exchanges as well as 30,000 social media followers and 13,000 holders.
While meme coins have fallen, the announcement of Sponge V2 is reviving demand.
The new version adds to its utility by including Play-to-Earn (P2E) games and updated staking features.
Sponge’s P2E game is available in two versions: free and paid. Users purchase credits using SPONGEV2 to access the paid version.
After the release of Sponge V2, the original Sponge token is no longer supported.
Existing Sponge holders can exchange V1 tokens for an equal amount of V2 by staking their tokens in the Sponge V2 staking contract.
Meanwhile, new buyers can visit the Sponge.vip website and select the Buy and Stake option to purchase Sponge V2 tokens and stake them until the end of the pre-launch campaign.
Meanwhile, staked tokens currently accrue an additional variable APY of 284%.
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