Global Crypto Market Correction, Solana Meme Coins Surge

The crypto market cap sees a decline of 2.30%, currently at $2.4 trillion. BONK and WIF, Solana meme coins, are outperforming the market, with BONK up 13.5% after a token burn approval, while WIF has surged 8.5%, despite the lack of significant news. Both coins show bullish potential, with BONK facing resistance at $0.000028 and WIF aiming for $4.20. However, a pessimistic outlook for BONK indicates a potential correction to $0.000020, while WIF support lies at $2.60.

Global Crypto Market Correction, Solana Meme Coins Surge

Amidst a widespread market correction, the global crypto market capitalization has witnessed a significant decline of 2.30%, currently standing at $2.4 trillion, as per data from CoinGecko. The leading cryptocurrencies, Bitcoin and Ethereum, along with the rest of the top 10 capitalized assets, have experienced downward adjustments following a sluggish Monday.

Despite the overall market trend, certain tokens have exhibited resilience, notably BONK and Dogwifhat (WIF), two Solana-based meme coins that have emerged among the top five performers within the top 100 coins by market capitalization.

BONK, a canine-themed meme coin introduced on the Solana blockchain on December 25, 2022, has experienced a remarkable 13.5% increase over the past 24 hours. The coin has ascended from $0.000021 to $0.000026, reaching a daily high of $0.000028 before settling at its current value. BONK has also accrued a 40% gain over the past week and a 12% increase in the past 30 days, despite facing a significant decline during the first half of April.

This upward surge coincides with the Bonk DAO's approval of a proposal to incinerate over 278 billion BONK tokens, an amount equivalent to over $6.2 million worth of $BONK. The community vote concluded with an overwhelming 99.9% support, represented by 418,625,159,192 votes in favor. Token burn events are generally perceived as bullish developments, as they reduce liquidity and enhance the scarcity of the token.

From a technical analysis perspective, BONK exhibits bullish indicators but lacks the necessary strength for a high-margin trade recommendation. The coin is undergoing a price recovery phase, with the exponential moving averages (EMAs) over 10 days (EMA10) and 55 days (EMA55) approaching a golden cross, which typically confirms an overall bullish sentiment.

Moreover, the Squeeze Momentum Indicator suggests a strong bullish impulse, further corroborated by a robust Average Directional Movement Indicator, indicating that the current upward momentum is potent enough to anticipate further gains.

In an optimistic scenario, assuming BONK maintains its momentum, it could potentially challenge a new resistance level near $0.000028, with $0.000037 serving as the subsequent target. However, a pessimistic scenario envisions a post-hype correction, potentially driving the token down to $0.000020, a clear support level and the inflection point between the EMA10 and EMA55.

On the other hand, WIF, another notable Solana-based meme coin introduced in November 2023, has witnessed a surge of approximately 8.5% over the past 24 hours. Unlike BONK, this upward movement appears to be solely price-driven, with no significant news or announcements triggering the market reaction. WIF ascended from $3.05 to a daily high of $3.54 before retracting to its current price of $3.21. Over the past 24 hours, 7 days, and 30 days, the coin has gained 8.5%, 39.2%, and 37%, respectively.

Dogwifhat presents a bullish outlook overall, despite facing a 50% correction in early April. The gap between the EMA10 and EMA55 is expanding, indicating that prices are accelerating over time. The Squeeze Momentum Indicator signals a trend reversal in progress, with traders purchasing the token following the price correction.

For WIF, if it successfully breaks through its daily high, substantiating its bullish sentiment, the next bullish target could lie within the range of $4.20 and its all-time high (ATH) of $4.80 (green line). Conversely, if it fails to sustain momentum, it may seek support near the EMA55 at $2.60 (red line).

Andrew Hayward provided editorial assistance for this article.

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