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The meme coin market has taken a drastic downturn as the broader crypto sector struggles this week. In the past seven days, market leaders Dogecoin (DOGE) and Shiba Inu (SHIB) are down 5.68% and 11.85%, respectively. However, speculators are optimistic about Sponge as its price remains up 8.05% this week and 192% this month.
Market pullback impacts meme coins
A broader market pullback following the spot Bitcoin ETF approvals has impacted meme coins, with investors cutting their positions amid apprehension of further downside.
Dogecoin has plunged 6.42% in the past day, 5.68% this week, and 16.94% this month. The downward movement was briefly interrupted on Jan. 21 following the announcement of X Payments, and a possible integration of DOGE.
However, Dogecoin’s uptick was short-lived, having retraced almost 15% since. Currently, Dogecoin is trading at $0.07737, with a $11 billion market cap and a $682 million trading volume.
DOGE is trading at a crucial resistance point, formed on a pullback after a notable pump starting in Q4 2023.
This is the sixth time Dogecoin has tapped the support.
Analysts’ outlooks are mixed on whether Dogecoin will bounce or create new lows. TradingView analyst SwallowPremium suspects there will be a breakout to the downside, leading Dogecoin toward $0.05897.
However, Alfamooz disagrees, predicting Dogecoin to reach $0.15 in the coming weeks.
Moving to Shiba Inu, the token has seen 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 $5 billion market cap and a $155 million 24-hour trading volume.
However, SHIB remains in a bearish run.
Nevertheless, analysts remain bullish on Shiba Inu, with Weslad forecasting a move toward $0.000059.
SHIB has pulled back since the analyst published the chart idea on Dec. 30.
SHIB remains within the analyst’s predetermined “buyback zone.”
But while Shiba Inu and Dogecoin are struggling to stay afloat, Sponge is trending higher, adding 8% this week and 190% this month.
This bull run follows the announcement that Sponge will bridge to Sponge V2, which comes equipped with new utility.
Sponge surging
Sponge launched in May 2023, around the same time as PepeCoin (PEPE), surging to reach a $100 million market cap.
It also secured listings on ten exchanges, as well as amassing 30K social media followers and 13K holders.
While the meme coin fell, the announcement of Sponge V2 is reviving demand.
The new version has a play-to-earn (P2E) game and an updated staking feature, adding utility.
Sponge’s P2E game comes in two versions, free and paid. Users will buy credits using SPONGEV2 to access the paid version.
Following the release of Sponge V2, the original Sponge token will no longer be supported.
Existing Sponge holders can stake their tokens in the Sponge V2 staking contract to swap their V1 tokens for an equivalent amount of V2.
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 pre-launch campaign ends.
In the meantime, staked tokens will accrue an additional variable APY, currently at 284%.
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