The cryptocurrency market’s latest bout of turbulence has left MemeCore reeling, with the token’s price plummeting in response to a broad-based selloff in the AI token sector. As the AI narrative that had been driving investor enthusiasm has begun to lose steam, tokens like MemeCore are facing a notable downward pull.
In addition, the recent hawkish tone of the Fed Chair Jerome Powell has also added to the negative sentiment surrounding the MemeCore token. The perfect storm of a broader sell-off in the AI sector and Powell’s hawkish tone has sent the token’s price tumbling, leaving investors to ponder the crypto’s future prospects. With the market’s volatility showing no signs of cooling, one thing is clear- MemeCore’s fate hangs precariously in the balance.
MemeCore Token Loses Momentum, Continues to Dip
Notably, MemeCore’s recent performance has been marked by significant dips. Over the past month, the token has traded in the negative territory, but recently showed signs of an uptrend.
In the past week, the cryptocurrency surged slightly, sparking investor interest and enthusiasm. But this positive trend was short-lived, and the token saw a significant dip today. Over the past 24 hours, the crypto has continued to slide, reaching $2.46, according to CoinMarketCap data. The crypto is down by 4.5% over the past 24 hours, despite notable upticks of 13% and 8.8% hikes over the past week and month, respectively.
Despite the weekly gains, the current trend suggests caution, and investors are closely watching for any signs of recovery or further decline.
What’s Behind This Dip?
The recent dip in MemeCore price could be attributed to a combination of factors that have collectively weighed heavily on the token’s value. One primary driver behind this decline is the broader market trend, which has been influenced by the Federal Reserve’s recent hawkish tone. Additionally, the AI token sector, to which MemeCore belongs, has experienced a significant sell-off, with top players also witnessing significant downtrends.
Technical indicators also suggest that the cryptocurrency is experiencing a bearish pull, with the possibility of an extended period of negativity.
AI Token Selloff
The AI sector experienced a significant downturn on October 31, with the sector index plummeting by 8%. This sharp decline signals a strong bearish shift, following weeks of market volatility.
The section-wide downtrend has been fueled by a loss of momentum in the AI narrative, which had previously been a key driver of growth for these tokens. Retail-heavy tokens, which are particularly sensitive to changes in hype and sentiment, have been hit hard.
As the AI narrative loses steam, traders are rotating out of these tokens and into faster-moving opportunities. The decline is not limited to MemeCore, as other AI-themed crypto assets like FET, GRT, and THETA have also seen significant drops. This indicates a broader pullback in the AI crypto space driven by profit-taking and waning momentum.
Powell’s Speech
Although the Federal Reserve reduced interest rates by 25 basis points, the bullish sentiment didn’t last long as Chair Jerome Powell hinted at no rate cuts ahead. This hawkish tone has triggered a negative trend across the crypto market, particularly on tokens like MemeCore, which are highly sensitive to such macroeconomic developments. Powell noted,
“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December. A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it.”
Technical Indicators
Furthermore, the technical indicators suggest that MemeCore is overextended, with the Relative Strength Index (RSI) at 76.28, signalling overbought conditions. The price hovers near the 23.6% Fibonacci retracement levels at $2.45. A decline in 24-hour trading volume by 5.11% to $14.8 million indicates waning buying conviction. Although the MACD histogram remains positive at 0.03, the lack of volume to sustain the 7-day rally has triggered profit-taking.
