The cryptocurrency market is witnessing a downturn in the meme coin sector, with Shiba Inu (SHIB) and Dogecoin (DOGE) emerging as top underperformers. According to CoinGecko data, SHIB and DOGE have declined by 3.5% and 2.5%, respectively, outpacing Bitcoin's (BTC) modest 0.9% drop over the same period.

The meme coin sector's struggles are widespread, with dogwifhat (WIF) plummeting by 6% and every meme coin with a market cap over $1 billion recording losses in the past 24 hours. Notable exceptions include Mog Coin (MOG), which has managed a modest 1.7% price increase. In contrast, major cryptocurrencies like XRP are currently showing positive performance.

The downturn in blue-chip meme coins is overshadowed by the dramatic collapse of celebrity-themed tokens, which have crashed by more than 90% after experiencing significant price surges in June. Iggy Azalea's MOTHER token, for instance, is down over 70%. The niche crypto sector has also been affected by impersonators targeting celebrities like 50 Cent.

Despite the current underperformance, cryptocurrency analyst Ali remains optimistic about Dogecoin's prospects, noting its tendency to rally after consolidation periods. Ali's expectation of a similar rally this time has led him to increase his DOGE holdings. Although DOGE has risen by 14% over the past two weeks, it remains 82.2% below its record high achieved during the 2021 bull run.

The meme coin sector's struggles serve as a reminder of the cryptocurrency market's volatility and unpredictability. As investors navigate this complex landscape, it is crucial to stay informed and adapt to changing market conditions.