Solana meme coins see steep correction as bull market enthusiasm fizzles out

The rally in Solana-based meme coins is losing momentum on Thursday after these tokens have yielded massive gains for holders in the past week. The recent market-wide correction in crypto, with Bitcoin declining below the $70,000 level, has driven meme coin prices lower on the daily time frame. 

On-chain analysts at Santiment argue that “bull market” enthusiasm may have fizzled out, but that crypto prices are likely to stay higher for longer as trader optimism persists. 

Solana meme coin party ends abruptly

Bitcoin price plunged close to $66,000 on Thursday. The correction ushered a broad market decline, with prices of speculative assets like meme coins leading the correction. Solana-based meme coins yielded nearly double-digit gains in the last seven days.

Solana-based meme coins suffer price decline. 

While the meme coin party may have ended abruptly, on-chain analysts at crypto intelligence tracker Santiment believe that the crypto market is still in a bull run. The enthusiasm among market participants seems to have thinned out since October, however, analysts state that less long-term optimism is not typically a warning sign for prices. 

The following chart from Santiment shows how the mention of “bull market” has declined to 450 from its peak of 2,100 observed in February. This is one of the metrics that the analysts take into account when measuring optimism among traders.

Bull market enthusiasm fades 

While traders may be less optimistic following the recent price correction in Bitcoin and altcoins, historically less long-term optimism has increased the probability of continued price rise in cryptocurrencies. Santiment analysts expect the same in the current market cycle.