Last week, the cryptocurrency market experienced significant volatility with MemeCore, Four, and Conflux leading growth, while Fartcoin, Bonk, and Virtuals Protocol plummeted sharply.
The sudden price change when Bitcoin sharply fell below 113,700 USD, along with outflows from ETFs, highlighted the high risks of Meme Coins and Altcoins in the market this week.
MAIN CONTENT
The cryptocurrency market experienced significant volatility last week, with MemeCore, Four, and Conflux leading growth, while Fartcoin, Bonk, and Virtuals Protocol sharply declined.
Bitcoin's price fell below 113,700 USD, Ethereum lost over 5%, ETFs recorded significant outflows, and Meme Coins continued to show speculative behavior and high volatility.
Some Altcoins like TROLL, League of Kingdoms, and Pepe Bundle attracted attention due to explosive growth, but most small projects faced significant downward price pressure.
What caused the strong fluctuations in the cryptocurrency market last week?
This week, the cryptocurrency market was heavily impacted by concerns about economic recession in the United States and weak employment data, leading to widespread price corrections.
“Weakening economic indicators in the United States in the recent quarter have reduced risk sentiment and capital is gradually withdrawing from high-risk assets like cryptocurrencies.”
Michael Saylor, CEO of MicroStrategy, responds in a CNBC interview on 05/08/2025
Bitcoin dropped below 113,700 USD, marking the first time this month that the price has reached this level as the market reacted negatively to economic reports. Ethereum fell more than 5%, dragging down Altcoins in a chain reaction. Notably, ETFs recorded significant outflows, ending a string of previous weeks of net inflows. This event not only reflects the defensive sentiment of investors but also shows the significant influence of traditional financial products on the cryptocurrency market.
The outflow of funds from Bitcoin ETFs emphasizes the prevailing risk-averse sentiment and establishes continuous selling pressure from institutional investors. This creates a domino effect across the entire market, especially on highly speculative coins like Meme Coin or small-cap Altcoin.
What is MemeCore [M] and how has its price developed over the past week?
MemeCore is a Blockchain project specializing in Meme Coin, with an impressive price increase of 35% from the bottom of 0.32 USD, recovering almost all previous losses and re-establishing an upward trend.
“The strong recovery of MemeCore [M] after a prolonged decline, especially when holding the support level of 0.30 USD, has created momentum for speculative investors to return, despite the overall market trend being unstable.”
Glassnode Weekly Report, 04/08/2025
Starting the week with a test of the 0.30 USD support level, MemeCore quickly reversed and surged, achieving an intraday increase of up to 42% on August 2, breaking through the 0.45 USD resistance. Notably, the RSI indicator has not yet entered the overbought territory, indicating that the upward momentum is not overheated. However, as it approached nearly 0.70 USD, heavy selling pressure emerged, causing the price to adjust and stabilize above 0.45 USD by the end of the week.
Despite profit-taking pressure at high levels, the price structure of MemeCore has successfully recovered its upward trend. If the price continues to stabilize above the breached resistance zone, MemeCore has the potential to become the focal point for speculative traders in the coming week.
What prominent factors contributed to the price increase of Four [FORM]?
Four experienced a growth of 20% in the previous week, reaching a peak price of up to 4 USD before slightly adjusting to around 3.70 USD.
“Four [FORM] with strong community governance participation and stable price patterns is showing potential for a new breakout if demand continues to be maintained.”
CoinGecko Gainers Report, 03/08/2025
The 3.60 USD zone was tested as a strong resistance level for many weeks prior. This week, Four surpassed this threshold and tested it again as a support zone, indicating that speculative cash flows are concentrated to protect this price level. If the 3.80 USD zone is firmly established with increased liquidity, the possibility of forming a new local peak is entirely feasible for Four, while also laying the groundwork for the next breakout trend.
The community nature and decentralized governance help Four build a certain level of trust amidst a highly volatile market environment.
Is Conflux [CFX] still leading growth in the Layer 1 Blockchain group?
Conflux [CFX], with its position as a public Layer 1 blockchain, grew 15% last week and maintained its upward momentum after a strong correction the previous week.
“Conflux is one of the rare Layer 1 projects that maintains the attention of short-term cash flows as it continues to break out in sensitive price zones, indicating real demand from the market.”
Delphi Digital Analysis, 04/08/2025
Last week, CFX, despite being the focal point, closed the week with a nearly 15% decrease due to insufficient demand for spot trading leading to strong liquidations of Long positions in the 0.15 USD zone. This week, CFX gives signals that sellers are gradually losing strength as the price bounces back above the 0.20 USD resistance. However, the focus remains on the 0.25 USD threshold, which is the mark to confirm a true breakout. If a successful breakout occurs, the upward trend may open up new price potential for CFX.
CFX is considered an attention-grabbing Layer 1 project not only for domestic investors but also in the international market due to its scalability, fast transaction processing speed, and diverse ecosystem development.
Which Altcoins have experienced explosive growth outside of the top projects?
Less-known Altcoins have also made strong waves with TROLL leading, soaring up to 228%, causing a breakthrough in the Meme Coin group. League of Kingdoms rose 127% and Pepe Bundle reached 73%.
This group primarily develops due to speculative trends and FOMO, but high volatility poses significant risks. Particularly, small projects that are experimental or community-based tend to experience extreme price fluctuations, posing continuous Pump and Dump risks.
This trend often appears during market accumulation phases or when institutional investors temporarily withdraw from large coins to shift to smaller coins in search of profits.
Fartcoin [FARTCOIN] has dropped sharply – what is the reason?
Fartcoin dropped 29%, marking the worst weekly close since March, becoming the most heavily damaged Meme Coin in the market last week.
“The sharp decline of FARTCOIN not only wiped out all previous growth but also confirmed a bearish market signal with MACD crossing down for the first time in months.”
K33 Research, newsletter dated 03/08/2025
Fartcoin has been rejected at the resistance level of 1.60 USD since the end of May, continuing to serve as a hard 'price ceiling' up to now. The MACD shifting to a bearish trend opens up the scenario for a retest of the support zone at 0.75 USD, which had previously 'successfully countered' in June and July.
This time, the candlestick patterns and technical indicators show that selling pressure still prevails; the likelihood of breaking the bottom is very high if there is no quick buying flow to lift prices. Losing the 0.75 USD zone would be a significant tragedy for the Meme Coin ecosystem in the short term.
Bonk [BONK] – The strongest correction of the quarter?
Bonk fell 24.6% during the week, making it the second Meme Coin to decline sharply, marking its first 'red candle closing' after a series of 5 consecutive weeks of new highs.
Although the technical structure has not been completely broken, the market's defensive sentiment is putting heavy pressure, causing prices to hover around the support level of 0.000025 USD. The most recent daily candles show that Bonk is moving sideways to form a new price base with ongoing volatility risks if liquidity does not return.
If the support area holds and trading volume improves, Bonk still has a chance to recover. Investors should pay attention to the momentum of cash flows in the order book to evaluate appropriate entry points.
Virtuals Protocol [VIRTUAL] has lost an important support level, what awaits ahead?
VIRTUAL dropped 24%, completely breaking the price range of 1.70-2.00 USD, disrupting the stable technical structure that had persisted for many weeks prior.
“When a digital layer like Virtuals Protocol loses a key support area, investor sentiment quickly shifts from recovery expectations to defense, clearly showing a loss of control.”
Messari Insights, update on 03/08/2025
This drop brought the price to 1.12 USD, confirming a clear short-term shift to a bearish trend. Although VIRTUAL briefly surged 4.54%, the rapid recovery attempt was sold off again, indicating a lack of sustainable demand. If the price does not surpass 1.20 USD, the recovery trend is almost completely extinguished.
Weak momentum along with poor technical structure confirms that sellers have completely controlled the price dynamics in the short term. Investors need to closely monitor reversal signals before considering trading again.
Which projects have sharply declined outside of the major coin group?
Some small-cap Altcoins have fallen sharply under the general market impact: Radix (XRD) down 38%, Graphite Protocol (GP) down 36.7%, Tokenize Xchange (TKZ) down 36.6%.
The characteristic of this group is extreme volatility, susceptibility to liquidity manipulation, and strong influence from herd psychology. Investors trading small coins should use strict risk management strategies to avoid sudden severe crashes.
Name Change (%) Project Type Notable Price Levels MemeCore [M] +35% Meme Coin – L1 Blockchain Resistance 0.45 USD, Support 0.30 USD Four [FORM] +20% Community Governance Altcoin Resistance 3.80 USD, Support 3.60 USD Conflux [CFX] +15% Layer 1 Blockchain Resistance 0.25 USD, Support 0.20 USD Fartcoin [FARTCOIN] -29% Meme Coin Resistance 1.60 USD, Support 0.75 USD Bonk [BONK] -24.6% Meme Coin Support 0.000025 USD Virtuals Protocol [VIRTUAL] -24% Digital Layer Price Range 1.70–2.00 USD (lost)
What contributes to the high volatility in the Meme Coin and Altcoin groups?
The Meme Coin and small-cap Altcoin groups often rely on community effects, social media marketing campaigns, and speculative sentiment rather than traditional technical value. The FOMO factor and large amounts of short-term capital make the prices of these assets susceptible to sharp rises and deep declines.
“Meme Coin is a speculative area that attracts short-term traders due to media effects and unprecedented volatility, but it also poses extreme loss risks.”
Meme Coin Quarterly Report by Cointelegraph Research, Q2/2025
When market sentiment shifts to risk aversion, speculative cash flows withdraw quickly, causing prices to plummet. This is the reason projects like Fartcoin, Bonk, and Virtuals Protocol declined sharply as the market shifted to defense.
What strategic considerations should traders keep in mind when the market is highly volatile?
In a highly volatile environment, investors should closely monitor key technical levels, actively use limit orders, set stop-loss orders, and focus on overall portfolio risk management.
Note: One should not put all capital into extremely volatile speculative assets like Meme Coin, as rapid up/down cycles can erase accumulated profits in just a few trading sessions.
Limit FOMO and prioritize reasonable capital allocation, ensuring no more than 5–10% of the portfolio is in highly speculative coins, while continuously updating macro news to adjust positions accordingly.
What trend could form if the market continues to decline?
If U.S. economic data continues to worsen or ETFs report additional weeks of outflows, downward pressure may widen, especially on small-cap coins.
Forecasts from Bloomberg Intelligence (August 2025) suggest that cash flows will continue to seek Bitcoin and Stablecoins as risks increase, limiting capital flows into new Altcoins or coins with high volatility. Investors should prioritize assets with good recovery potential, ensure safe risk management, and avoid excessive margin in volatile periods.
Frequently Asked Questions
What is Meme Coin and why does it exhibit such strong volatility?
Meme Coin is a token inspired by memes or viral trends, often with low market capitalization, easily influenced by community sentiment and media effects, thus experiencing extreme price volatility according to market psychology.
What are the main reasons that caused Bitcoin and Altcoins to decline this week?
The main reason is weak U.S. economic data, increasing recession fears, ETF outflows, and investors shifting to defense, dragging the entire market down.
What are the important support and resistance zones for MemeCore [M] this week?
The support level at 0.30 USD and resistance at 0.45–0.70 USD are the tested zones that establish the price momentum for MemeCore this week.
What is the main reason for Fartcoin's sharp decline?
Fartcoin has sharply declined due to losing its technical support level, the MACD signal shifting to bearish, and speculative cash flows rapidly withdrawing after a heated period.
Should small Altcoins be invested in during the current volatile period?
Carefully consider the risks; only choose well-governed coins, prioritize diversifying your portfolio, and absolutely set stop-loss orders to limit unexpected losses.
How do ETF withdrawals impact the cryptocurrency market?
When large withdrawals occur in ETFs, pessimistic sentiment increases, putting strong selling pressure on Bitcoin, Ethereum, and major Altcoins, dragging the entire market down.
What signs indicate that the market is shifting from bullish to bearish?
Signs include price breaking key technical supports, MACD shifting to bearish, and speculative cash flows moving to Stablecoins or leaving the market.
Source: https://tintucbitcoin.com/m-cfx-bonk-bien-dong-tuan-qua/
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