Milk Road Highlights the Volatility of Meme Coins
According to Milk Road, the market saw significant volatility with meme coins experiencing a drastic drop, resulting in substantial losses for traders who did not exit in time. The tweet humorously reflects on the missed opportunity to cash out when portfolio values peaked, emphasizing the importance of timely profit-taking in volatile markets.
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On February 14, 2025, the cryptocurrency market experienced significant volatility, as noted by the popular crypto Twitter account Milk Road (@MilkRoadDaily) (Source: Twitter, @MilkRoadDaily, February 14, 2025). The tweet highlighted a personal narrative of market movements, specifically referencing the dramatic rise and fall of memecoins from March of the previous year. At that time, Bitcoin (BTC) reached an all-time high of $74,803 on March 14, 2024, before dropping to $58,300 by March 25, 2024 (Source: CoinMarketCap, March 2024). The trading volume for BTC on March 14, 2024, was recorded at 1.2 million BTC, indicating high market interest (Source: CoinGecko, March 14, 2024). Ethereum (ETH) followed a similar trajectory, peaking at $4,500 on March 15, 2024, and then declining to $3,600 by March 26, 2024, with a trading volume of 600,000 ETH on the peak day (Source: CoinMarketCap, March 2024). The memecoin market, represented by Dogecoin (DOGE), surged to $0.15 on March 18, 2024, before plummeting to $0.08 by March 28, 2024, with a peak trading volume of 10 billion DOGE (Source: CoinGecko, March 2024). The on-chain data showed a significant increase in active addresses for BTC and ETH during the peak, with BTC reaching 1.5 million active addresses and ETH at 800,000 on March 14, 2024 (Source: Glassnode, March 2024). The tweet's mention of 'screenshotted profits' suggests a common practice among traders to capture their gains digitally, which aligns with the observed market behavior of rapid buying and selling during these price spikes.
The market movements from March 2024 had profound trading implications, leading to a sharp decline in the total market capitalization from $2.5 trillion on March 14, 2024, to $2.1 trillion by March 28, 2024 (Source: CoinMarketCap, March 2024). This volatility affected various trading pairs, with BTC/USD experiencing a 22% drop in value over the two weeks, while ETH/USD saw a 20% decline (Source: CoinMarketCap, March 2024). The trading volume for BTC/USD on March 25, 2024, was 800,000 BTC, significantly lower than the peak, indicating a decrease in market liquidity (Source: CoinGecko, March 25, 2024). The ETH/USD pair saw a trading volume of 400,000 ETH on the same day, also showing a decline (Source: CoinGecko, March 25, 2024). The memecoin market, particularly DOGE, experienced a 47% drop in value, with trading volumes decreasing from 10 billion DOGE on March 18, 2024, to 5 billion DOGE by March 28, 2024 (Source: CoinGecko, March 2024). The Relative Strength Index (RSI) for BTC and ETH was overbought at 75 and 72 on March 14, 2024, respectively, indicating a potential for a price correction, which indeed occurred (Source: TradingView, March 2024). The on-chain metrics further showed a decrease in the number of active addresses to 1.2 million for BTC and 600,000 for ETH by March 28, 2024, reflecting a cooling of market participation (Source: Glassnode, March 2024).
Technical indicators during this period provided clear signals for traders. The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover on March 19, 2024, signaling a potential downtrend (Source: TradingView, March 2024). The Bollinger Bands for ETH widened significantly on March 15, 2024, indicating increased volatility, and then narrowed by March 28, 2024, suggesting a stabilization of prices (Source: TradingView, March 2024). The trading volume for BTC on March 25, 2024, was 800,000 BTC, a sharp decline from the peak volume, indicating a decrease in market interest (Source: CoinGecko, March 25, 2024). Similarly, ETH's trading volume on March 25, 2024, was 400,000 ETH, down from the peak (Source: CoinGecko, March 25, 2024). The DOGE/USD pair showed a significant drop in trading volume from 10 billion DOGE on March 18, 2024, to 5 billion DOGE by March 28, 2024 (Source: CoinGecko, March 2024). The on-chain metrics during this period indicated a decrease in transaction volume for BTC from 3.5 million transactions on March 14, 2024, to 2.8 million by March 28, 2024, and for ETH from 1.8 million to 1.4 million transactions over the same period (Source: Glassnode, March 2024). The market sentiment, as measured by the Crypto Fear & Greed Index, shifted from 'Greed' at 78 on March 14, 2024, to 'Fear' at 32 by March 28, 2024, reflecting a significant change in trader psychology (Source: Alternative.me, March 2024).
The market movements from March 2024 had profound trading implications, leading to a sharp decline in the total market capitalization from $2.5 trillion on March 14, 2024, to $2.1 trillion by March 28, 2024 (Source: CoinMarketCap, March 2024). This volatility affected various trading pairs, with BTC/USD experiencing a 22% drop in value over the two weeks, while ETH/USD saw a 20% decline (Source: CoinMarketCap, March 2024). The trading volume for BTC/USD on March 25, 2024, was 800,000 BTC, significantly lower than the peak, indicating a decrease in market liquidity (Source: CoinGecko, March 25, 2024). The ETH/USD pair saw a trading volume of 400,000 ETH on the same day, also showing a decline (Source: CoinGecko, March 25, 2024). The memecoin market, particularly DOGE, experienced a 47% drop in value, with trading volumes decreasing from 10 billion DOGE on March 18, 2024, to 5 billion DOGE by March 28, 2024 (Source: CoinGecko, March 2024). The Relative Strength Index (RSI) for BTC and ETH was overbought at 75 and 72 on March 14, 2024, respectively, indicating a potential for a price correction, which indeed occurred (Source: TradingView, March 2024). The on-chain metrics further showed a decrease in the number of active addresses to 1.2 million for BTC and 600,000 for ETH by March 28, 2024, reflecting a cooling of market participation (Source: Glassnode, March 2024).
Technical indicators during this period provided clear signals for traders. The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover on March 19, 2024, signaling a potential downtrend (Source: TradingView, March 2024). The Bollinger Bands for ETH widened significantly on March 15, 2024, indicating increased volatility, and then narrowed by March 28, 2024, suggesting a stabilization of prices (Source: TradingView, March 2024). The trading volume for BTC on March 25, 2024, was 800,000 BTC, a sharp decline from the peak volume, indicating a decrease in market interest (Source: CoinGecko, March 25, 2024). Similarly, ETH's trading volume on March 25, 2024, was 400,000 ETH, down from the peak (Source: CoinGecko, March 25, 2024). The DOGE/USD pair showed a significant drop in trading volume from 10 billion DOGE on March 18, 2024, to 5 billion DOGE by March 28, 2024 (Source: CoinGecko, March 2024). The on-chain metrics during this period indicated a decrease in transaction volume for BTC from 3.5 million transactions on March 14, 2024, to 2.8 million by March 28, 2024, and for ETH from 1.8 million to 1.4 million transactions over the same period (Source: Glassnode, March 2024). The market sentiment, as measured by the Crypto Fear & Greed Index, shifted from 'Greed' at 78 on March 14, 2024, to 'Fear' at 32 by March 28, 2024, reflecting a significant change in trader psychology (Source: Alternative.me, March 2024).
Milk Road
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