The Memecoin market increased by 10 billion dollars after the incident – What traders need to pay attention to next!

After the market collapse, it will take time to bounce back. However, to confirm a bullish trend, reallocating capital into assets with higher "risk-reward" will demonstrate the true resilience of the market.

In this context, the increase in investment in memecoins from whales could be an early sign that investors are intelligently repositioning their strategies instead of retreating, which demonstrates the intrinsic strength of the market.

Capital shifts to memecoins as investors manage losses

The market is still heavily affected by FUD, absorbing losses from the recent sell-off. In this environment, pursuing short-term profits to offset losses is a typical risk management move. Accordingly, memecoins have attracted a considerable amount of capital, indicating that investors may be looking for quick bullish opportunities.

Data from Coinphoton shows that the total market capitalization of memecoins has increased by $10 billion since the drop on October 10, while weekly trading volume has also risen by 40%, indicating new momentum in "high-risk, high-reward" investments.

Source: CoinMarketCapIn summary, investors are strategically repositioning to navigate the volatility. On the chart, the DOGE/BTC ratio is reinforcing this trend.

At the time of writing, this rate has increased by 1.80% compared to the previous day. However, looking further back, this rate has increased by nearly 80% from the bottom of 0.0000009 after the drop.

To put this into context, the ETH/BTC ratio has only increased by 10% since the drop, widening the risk gap to nearly 70%. This indicates that traders are leaning towards memecoins for quicker exposure to the market.

Whales Lead in Exploring Risk-Reward Opportunities

Preventive signals from smart investors indicate the underlying strength of the market. On-chain data shows that a whale spent 4.97 million USDT to buy 600 billion Pepe (PEPE), with 1 million USDC still ready for subsequent transactions.

Meanwhile, the Dogecoin whale (DOGE) is also participating in this trend. The chart has highlighted three major whale groups that have accumulated about 550 million DOGE since the drop, marking the largest bullish since mid-September. The accumulation seen in both PEPE and DOGE is not a coincidence.

Source: SantimentInstead, savvy investors are clearly "repositioning" into memecoins.

On the chart, pursuing short-term profits in these meme investments is a classic way to bounce back losses from the $20 billion drop. Essentially, negative information (FUD) is pushing capital into speculative assets.

On a macro level, this demonstrates the strength of the market. Along with negative information that has driven panic selling, it is now pushing traders towards speculative assets. If risk sentiment changes, this could establish a strong bounce back across the entire cryptocurrency market.

Mr. Giáo