Meme Coins Plunge 25% as Crypto Fear Index Drops

Meme coins are experiencing a significant crash as the crypto fear and greed index plunges into the fear zone.

In the last 24 hours, the market capitalization of these tokens has dropped 25% to $29.8 billion, a sharp decline from over $63 billion earlier this year, resulting in a $33.8 billion loss for investors.

Major meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), have each fallen over 23% recently. Other tokens like Floki (FLOKI) have suffered losses exceeding 30%. This sharp decline coincides with a dramatic increase in trading volume, which surged 170% to over $9.72 billion.

Simultaneously, the open interest in futures contracts for these coins has also decreased.

Pepe’s open interest has fallen from $146 million to $93.61 million, and Dogecoin’s has dropped from over $757 million to $536 million. Other meme coins are seeing similar declines.

The downturn in meme coins is part of a broader market trend, with major stocks also declining. Despite the current market turmoil, the heavy sell-off might present future opportunities.

Oversold conditions in these coins, marked by extremely low Relative Strength Index (RSI) values, could indicate a potential rebound if market conditions improve or if the Federal Reserve adjusts interest rates.