Smart Money Moves: Memecoins Under Pressure as Sell-offs Intensify
In recent days, the memecoin market has noticed a shift in investor sentiment. Some tokens are selling off a lot.
Long considered highly speculative assets, memecoins are increasingly being seen as definitely low-quality, and the prices of some are tumbling in a not-so-distant echo of the 2012-14 crash that took Dogecoin and a handful of other coins down with it.
This week, we take a close look at the smart money’s activity and the appearance of the increasing levels of selling pressure among some of the situation’s tokens.
Key Insights into the Current Sell-off Trend
1. $ARC Faces the Highest Negative Net Flow
Among the various tokens being traded in the memecoin market, \$ARC stands out due to its significant negative net flow. It has the highest outflows of any token in the market, and that points to serious selling pressure. If \$ARC was some kind of signal, it’d be saying that investors are torching their bullish long positions and acting like bears. Why? Probably because the same factors dragging Bitcoin downward are affecting \$ARC, and there just doesn’t seem to be any good reason to hold it.
For $ARC, this pressure could be a cause for concern, as it may signal the very starting point of a much longer, much slower descent in the value of the market it calls home. Tokens like $ARC and their holders typically live in a world of dramatic ups and downs, most often dramatized by sudden surges in price or occasioned by sudden sell-offs. To the extent that those price moves are also occasioned by certain traders Hamilton mentions and what they are doing with their BTC, we see their value living and dying with price moves in that asset.
2. $ALCH and $STONKS Follow Suit with Notable Outflows
$ALCH and $STONKS have also seen significant outflows of late, indicating that these two tokens, too, are under the gun from the smart-money sell side. The not-so-sudden sell-off in these two tokens suggests that they no longer enjoy the same level of “I love this token” from the investor class.
For $ALCH, which had first gained notice because of its potential in the market driven by memes, the outflows are especially worrying. Community interest and enthusiasm normally fuel memecoins, but if $ALCH’s big investors are draining it, the price could undergo a long downturn. Inside the memecoin ecosystem, $STONKS might be the next to fall. Even with its playful appeal, $STONKS looks likely to sink.
The outflows from these two tokens indicate that traders are now intensively seeking to cut their losses or invest somewhere else. These sell-offs could lead to further declines in the value of $ALCH and $STONKS, which would only reinforce current sentiment that tokens are nothing but fading stars.
3. $BOTIFY, $SOLNIC, and $ORE Experience Moderate Net Outflows
Alongside the better-known, larger tokens, a number of smaller memecoins, such as $BOTIFY, $SOLNIC, and $ORE, have seen moderate outflows. Even though these tokens are not as familiar to most people as $ARC, $ALCH, or $STONKS, their low market caps make them even less secure. That leaves them vulnerable to liquidity issues and shifts in investor sentiment.
For $BOTIFY, $SOLNIC, and $ORE, the moderate outflows could be a sign that liquidity is drying up, as these smaller tokens struggle to maintain their appeal among investors. The decrease in interest could be a result of several factors, including the tokens failing to attract new buyers or the broader memecoin market showing signs of cooling down. This trend is worrying, especially for tokens with lower market caps, as their value can be more easily manipulated, and large outflows can create more volatility. The reduced liquidity might make it harder for these tokens to recover or attract further interest in the future.
4. $PYTH Shows Resilience with Low Sell Pressure Despite High Market Cap
Although numerous tokens are undergoing very large outflows, $PYTH distinguishes itself with showings of very low sell pressure, despite a very high market cap. Unlike $ARC and some other tokens that are showing very large outflows, $PYTH has been maintaining a certain level of stability, with not too many investors choosing to sell their positions.
This suggests that $PYTH may be more capable of weathering the present storm than other memecoins and could be considered a safer bet in the memecoin sector. Despite a big market cap, the relative stability of $PYTH could suggest it has a solid community backing it or that investors regard it as having long-term potential. This could be heartening for holders of $PYTH, as it might suggest they don’t face the same risk of sharp declines some other memecoins currently do.
Smart money are selling these memecoins
4 Insights:$ARC has the highest negative net flow, indicating significant selling pressure$ALCH and $STONKS also show notable outflows, suggesting these tokens are experiencing sell offs.
Memecoins like $BOTIFY, SOLNIC, and ORE have… pic.twitter.com/uVFDg5fXxj
— Stalkchain (@StalkHQ) March 31, 2025
What Does This Mean for the Future of Memecoins?
The present trend of intensified sell-offs in the memecoin market conveys a change in investor sentiment. While memecoins might gain rapidly, they seem to be that much more vulnerable to sharp price drops when the market goes through one of its cooling off periods or when interest shifts to other trades. The significant amounts that have flowed out of tokens like $ARC, $ALCH, and $STONKS read like a warning that these trades are in serious trouble and could foretell the end of their temporary market runs.
The drying up of liquidity and interest could be a sign that the memecoin market is maturing and that the latest speculative mania is starting to fade. For smaller tokens like $BOTIFY, $SOLNIC, and $ORE, this maturation process could be unflattering. In contrast, $PYTH has been maintaining its price and, therefore, could be deemed more of an opportunity for stability and growth. If nothing else, these twin processes—liquidity drying up for some tokens, price maintenance for $PYTH—suggest that it may now be a better time to be investing in memecoins under highly selective and cautious conditions than previously.
To sum up, the memecoin market is experiencing a shift in dynamics, and it’s not necessarily in favor of memecoins. Investors should keep a close watch on capital flows and stay alert for any signs of a downturn in memecoin sentiment. Yes, there’s still a potential for outsized returns, but the risk profile of these assets has recently come into much sharper focus, at least from my perspective. Memecoins are still under-researched and overhyped. And if you get caught up in the hype without doing the kind of deep due diligence that one would perform on a company whose stock one intended to buy, you’re doing yourself a disservice.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
