An investor’s worst nightmare is an unexpected drop in their chosen asset. The current bull run has been heavily focused on meme tokens, which has provoked a significant overbought. Promiscuous buyers do not tend to change the asset pool frequently, despite their transition to the category of meme coins to sell. Having fallen into this trap, investors wake up too late from their dreams of a 100-fold increase in the investment portfolio.

June 2024 was a cold shower for many holders of coins without fundamental value. The correction was predictable, but greed kept buyers from getting rid of dangerous tokens. As a result, forums are full of posts about incredible drops, and meme coin holders are tearing their hair out. 

While traders are looking with fear at a possible 10-20% drop in Bitcoin (BTC-USD), meme coin holders have already seen a 30, 40, and sometimes 70% decline. A timely exit from assets should not be seen as a loss. On the contrary, it is an opportunity to save earnings and move to more promising coins for your savings and peace of mind.

Floki (FLOKI-USD)

Over the 3 years of its existence, Floki (FLOKI-USD) has attracted hundreds of thousands of users and has taken the fifth position in the market capitalization ranking among meme coins. Dogecoin (DOGE-USD) and Shiba Inu (SHIB-USD) set an example, and Floki used their experience as a guide. As a result, the “people’s cryptocurrency” boasts 400,000 registered wallet holders and tries to provide functional benefits to stand out from other meme culture representatives. It operates on ERC-20 and BEP-20 standards and adds its partnership network to keep up with the hype. And these efforts paid off, bringing new records in early June 2024 (reaching a price high of $0.0003462).

Inspired investors expected a further rise, but everything turned into a 2-fold decline. In the last 7 days alone, the token has dropped by 17.13% and is now at around its lowest monthly level. The market capitalization shows a similar behavior: if in mid-June it exceeded $3 billion, now it is struggling to overcome the $1.6 billion mark. Bearish sentiment dominates among FLOKI holders, and the Relative Strength Index (RSI) could only rise to 36.89, which puts the token on the list of meme coins to sell. 

Cat in a Dogs World (MEW-USD)

Amid the abundance of dog-themed meme coins, the crypto community wanted some variety. Created in March 2024, Cat in a Dogs World (MEW-USD) provided an alternative in the form of a white cat. It might not have been expected to gain much traction considering the number of competitors, but the market behaved illogically. In a few months, the token achieved what hundreds of altcoins cannot, ranking 153rd in terms of market capitalization. 

The token has maintained its position despite the bullish sentiment thanks to the hype generated by its listing on Binance Futures on June 17, 2024. This move is not a sign of further growth, as token prices typically rise before and for a short time after debuting on major platforms. Its market capitalization did not grow despite this event. It is only half of its April figures, when it crossed the $750 million mark, which is alarming and puts the token in the category of meme coins to sell. The STOCH indicator shows 25.32, which is a direct instruction to sell. The long-term sustainability of the meme coin depends on the trust of investors, who will not be favorable if the hype around the project decreases.

PepeCoin (PEPE-USD)

The beginning of 2024 has been favorable to PepeCoin (PEPE-USD), which is evident from the repeated rise in the price chart. The winter-spring of this year brought new records to the coin in the form of highs at $0.000009977 and then $0.00001718. After purchasing the token, investors were confident in the future and did not expect it to switch to the category of meme coins to sell. However, the growth picture began to collapse with the downturn in May-June, when PEPE dropped by 1.5 times. The Market Value to Realized Value (MVRV) ratio suggests that investors have become more cautious, and the coin has entered a dangerous zone. 

Over the past 10 days, whales have been steadily withdrawing funds from the asset, causing a total outflow of more than $120 million. This activity has suppressed the potential for a near rally and cooled buying sentiment. The sale of 114 billion PEPE alone shook the community and made them think about hedging in other assets. At a time like this, investors are taking a harder look at the recent allegations of insider trading and security breaches. The community’s trust and activity are declining, but further growth is only possible with it.

On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.