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Smart Money Flows into Memecoins as Net Inflows Turn Positive on April 11

2 days ago
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The memecoin market still drew interest from clever investors, judging by on-chain data that indicated the capital flow was shifting in a positive direction.

This week, for the first time, the amount of money flowing into the memecoin sector was greater than the amount of money flowing out. In fact, the memecoin sector was now experiencing some very low-key inflow all week long. Overall, it looked like some clever wallets were selectively piling into certain meme-based assets.

Based on information gathered from several blockchain analytic platforms, memecoins received inflows of $3.81 million, while outflows were slightly lower, at $3.55 million. This brought the net volume to a modest but significant $259,000. Transactions for the day totaled $7.36 million, pointing to ongoing activity and ramped-up liquidity in the ever-so-liquid memecoin sector.

Although the amounts may appear minute when juxtaposed with the market capitalizations of major cryptocurrencies, this net positive transition is an essential step in the sentiment-driven and unstable world of memecoins. It serves to indicate that prudent investors, who are often colloquially designated as ‘smart money,’ are taking a renewed interest in these high-risk, potentially high-reward tokens. They seem to be motivated by an expectation of some continuing conversation in the market about memecoins or perhaps some forthcoming price movement.

Targeted Inflows Signal Selective Confidence

Reworking the smart money movements shows a few memecoins that are drawing capital inflows and—if you ask me—this is indicating some short- to mid-term bullishness on them. Among the top gainers:

– The inflow chart was headed by $POPCAT, which had $445,000 entering the token in capital. $POPCAT is a community-driven memecoin with viral appeal, trading volume on Solana, and an exuberant and loyal following.

– $RFC—a newer entrant with growing traction—recorded inflows of $325,000. With growing discussions across crypto forums, $RFC seems to be profiting from increased exposure and meme momentum.

– $AVA and $JLP have brought in $147,000 and $121,000 respectively, as investors turn their attention to the newer or more specialized opportunities within the memecoin ecosystem. These tokens are interesting to the crypto community because they have active communities that show promise of early-stage growth.

– $MANEKI, a cat-themed token inspired by the luck and fortune of Japanese folklore, saw $117,000 in inflows. Its culturally resonant theme has been gaining traction, especially in Asian markets, making it one to watch.

The inflows of these tokens reflect not only enthusiasm from the communities but also the calculated and shrewd bets made by the wallets of the blockchain-savvy. Known for timing trends well, such investors often signal the very early phases of the momentum or accumulation in which retail traders look for the next big play.

Outflows Suggest Profit-Taking and Cooling Sentiment

Some tokens enjoyed new capital coming in, while others saw large amounts going out, suggesting that those investors had either decided they were done waiting for prices to go up or had soured on the tokens they had been holding. Some key points:

– FARTCOIN saw its biggest outflow that day at $953,000. Once a leader in the joke-coin field, #FARTCOIN now appears to be confronting saturation or instead a capital rotation cycle as investors move their money into new projects.

PONKE and FWOG also logged outflows of $179,000 and $126,000, respectively. Both tokens had been on strong runs, and the withdrawals may reflect investors locking in those gains or shifting attention to other opportunities.

$ZEUS and $KMNO had much smaller outflows of $70,000 and $40,000. This could mean that they had mild sell-offs, or that they had early exits from what were probably smaller positions.

These outflows don’t necessarily mean the projects are failing, but they do indicate a change in sentiment as traders reassess risk and reward across the memecoin universe.

In the cases where we see sharp outflows, if new narratives or catalysts emerge, the tokens often make a comeback.

Market Sentiment and What Lies Ahead

There may be a shift in the tide as memecoins see a small increase in capital flowing their way. This is interesting, as the coinspace has long been viewed as a vast wasteland of derivative projects devoid of any real market value. In some ways, the return of memecoins — and the tiny net inflow they now seem to be enjoying — serves as a prime warning sign for the altcoin market.

The selective nature of where smart money is going today is much more of a mature appearance of what we’re seeing. It’s not like there’s a memecoin mania, and you’re just throwing capital into whatever ticks the memecoin box. Smartly, strategic capital seems to be going to very specific memecoins that have some kind of story or community behind them—or even those that are just really, really funny.

The memecoin market, as always, is very volatile, and reversals occur quickly. But the latest evidence provides a glimpse into the thinking of today’s investors: They are being opportunistic, using data to make decisions, and very much participating in the meme economy.

In the next few days, we can expect to see the same volume and inflows into specific tokens that have been around for some time now. Volume and inflows into these tokens may spark rallies broader across the market. In contrast, tokens that have been experiencing outflows will likely be entering cooling phases. Traders and analysts will be watching closely to see which of the currently popular memes survive the next market rotation.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Source: https://nulltx.com/smart-money-flows-into-memecoins-as-net-inflows-turn-positive-on-april-11/