Close Menu
  • Home
  • AI & Technology
  • Politics
  • Business
  • Cryptocurrency
  • Sports
  • Finance
  • Fitness
  • Gadgets
  • World
  • Marketing

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

XRP Price Trapped Below Resistance – Bulls Running Out of Steam?

August 7, 2025

The best laptop you can buy in 2025

August 7, 2025

Bitcoin Price Tries to Climb Again – Bulls Eye Short-Term Upside

August 7, 2025
Facebook X (Twitter) Instagram
  • Home
  • About US
  • Advertise
  • Contact US
  • DMCA
  • Privacy Policy
  • Terms & Conditions
Facebook X (Twitter) Instagram
MNK NewsMNK News
  • Home
  • AI & Technology
  • Politics
  • Business
  • Cryptocurrency
  • Sports
  • Finance
  • Fitness
  • Gadgets
  • World
  • Marketing
MNK NewsMNK News
Home » Beware of dead cat bounce
Cryptocurrency

Beware of dead cat bounce

MNK NewsBy MNK NewsDecember 22, 2024No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email


Most meme coin prices rebounded on Saturday, Dec. 21, after falling for most of the week, with their combined market cap rising by 4.7% to $109 billion.

Shiba Inu (SHIB) price rose by 12.6% to an intraday high of $0.00002397. Bonk (BONK), the biggest meme coin in the Solana ecosystem, rose by 20% to $0.000032. Pepe (PEPE) and other popular meme coins like Dogwifhat and Pudgy Penguins rose by over 15%. 

This rebound happened after a Bitcoin (BTC) plunge from $108,200 to $97,000 triggered a big crash in most altcoins. The total market cap of all cryptocurrencies dropped from over $3.7 trillion to $3.37 trillion.

The rebound is likely due to the US’s encouraging Personal Consumption Expenditure report. The headline PCE, the Federal Reserve’s favorite inflation gauge, softened from 0.2% in October to 0.1% in November. Core PCE dropped from 0.3% to 0.1%, a sign that inflation in urban and rural areas was slowing.

American stocks also reacted positively to the PCE report on Friday, with the Dow Jones, S&P 500, and Nasdaq 100 indices rising by over 1.18%, 1.10%, and 0.85%, respectively.

These numbers came a few days after a hawkish Fed decision triggered a sell-off in risky assets like stocks and cryptocurrencies. The bank slashed rates by 0.25%, bringing the yearly cuts to one percent, and hinted that it would deliver two more cuts in 2024. The last meeting’s dot plot pointed to four cuts.

The Fed justified its hawkish view to the stubbornly high inflation. Recent data showed that the headline Consumer Price Index rose to 2.7%, while the core CPI remained at 3.3%. The bank also suspects that some of President-elect Donald Trump’s policies (i.e., tariffs) will be inflationary.

Shiba Inu, Bonk, and Pepe rise could be a dead cat bounce

Meme coins like Shiba Inu, Pepe, and Bonk also likely jumped as crypto investors bought the dip after they dropped for three consecutive days. 

A potential risk for the ongoing rebound is that this could be a dead cat bounce. A DCB is a situation where falling asset prices stage a brief rebound and then resume the downward trend.

For example, Shiba Inu dropped by 15% on Dec. 9 and by 1% on the following day. It then formed a DCB by rising by 6% on Dec. 11 and then resumed its downtrend, reaching a low of $0.00001855 on Dec. 20.

Shiba Inu price
Shiba Inu price has formed dead cat bounces in the past | Source: crypto.news

The other potential risk for these coins, especially Shiba Inu, is that some of them have formed a head and shoulders chart pattern.

An H&S pattern is a popular bearish reversal sign made up of a head, two shoulders, and a neckline, which is at $0.00002280. That is a sign that the coin may continue the downtrend.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
MNK News
  • Website

Related Posts

XRP Price Trapped Below Resistance – Bulls Running Out of Steam?

August 7, 2025

Bitcoin Price Tries to Climb Again – Bulls Eye Short-Term Upside

August 7, 2025

Japanese Financial Giant SBI Moves Forward With Bitcoin-XRP ETF Application

August 6, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

Pakistan women lose by 11 runs in first Ireland T20 – Sport

August 6, 2025

Pakistan women target 143 in first Ireland T20 to continue winning momentum – Sport

August 6, 2025

Pakistan women win toss and bowl in first Ireland T20 – Sport

August 6, 2025

Porto ‘legend’ Jorge Costa dies aged 53 – Sport

August 6, 2025
Our Picks

XRP Price Trapped Below Resistance – Bulls Running Out of Steam?

August 7, 2025

Bitcoin Price Tries to Climb Again – Bulls Eye Short-Term Upside

August 7, 2025

Japanese Financial Giant SBI Moves Forward With Bitcoin-XRP ETF Application

August 6, 2025

Recent Posts

  • XRP Price Trapped Below Resistance – Bulls Running Out of Steam?
  • The best laptop you can buy in 2025
  • Bitcoin Price Tries to Climb Again – Bulls Eye Short-Term Upside
  • Japanese Financial Giant SBI Moves Forward With Bitcoin-XRP ETF Application
  • Trump’s broad tariffs go into effect, just as economic pain is surfacing

Recent Comments

No comments to show.
MNK News
Facebook X (Twitter) Instagram Pinterest Vimeo YouTube
  • Home
  • About US
  • Advertise
  • Contact US
  • DMCA
  • Privacy Policy
  • Terms & Conditions
© 2025 mnknews. Designed by mnknews.

Type above and press Enter to search. Press Esc to cancel.