Bull Market Enthusiasm Fades: Solana Meme Coin Party Ends Abruptly

Bull Market Enthusiasm Fades: Solana Meme Coin Party Ends Abruptly

Crypto traders’ enthusiasm for an ongoing bull market has significantly decreased since October 2023. According to Santiment analysts, lower long-term optimism among market participants should not necessarily have a negative impact on prices. Solana-based meme coins such as Dogwifhat, Bonk, Slerf or Ponke have experienced steep corrections, especially on Thursday.

The Solana-based meme coin's rally has lost momentum after holders posted massive gains last week. The general cryptocurrency market correction, which saw the Bitcoin price fall below the $70,000 mark, resulted in a decline in the meme coin's prices on a daily basis.

Bitcoin price fell to nearly $66,000 on Thursday, sparking a broad market decline, with speculative assets like meme coins leading the correction. Solana-based meme coin recorded almost double-digit gains in the last seven days before the abrupt correction began.

Although the meme coin party ended abruptly, on-chain analysts at Santiment believe that the crypto market remains in an uptrend. Although market participants' enthusiasm appears to have waned, analysts say this is not a warning signal for prices. Mentions of “bull market” have fallen from a peak in February to 450, an indicator of traders’ optimism.

Despite lower optimism following the recent price correction in Bitcoin and altcoins, Santiment analysts have noted that cautious long-term optimism has historically increased the likelihood of further cryptocurrency price increases. They also predict something similar for the current market cycle.