Memecoins are underperforming the crypto market today, which could indicate that traders will pay more attention to BTC and ETH.

The decline in memecoins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) on June 18 reflects a broader trend of weakening market structure and declining trading volume. Here's a breakdown of the reasons behind the crash:

1. Weakening Market Structure: Historically, bull markets see capital rotating from large-cap cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) into altcoins, including memecoins. However, the correction in memecoin prices coincides with a pullback in the Total3 market cap (total market cap excluding BTC and ETH), indicating a broader market downturn.

2. Technical Indicators: The Relative Strength Index (RSI) for altcoins, including memecoins, turned away from the overbought region, signaling a potential trend reversal or corrective pullback. Altcoins are currently trading within a descending parallel channel, suggesting a continued downward trend unless the Total3 market cap rises above $600 billion.

3. Declining Trading Volume: Memecoin trading volumes have been decreasing since early March, indicating waning trader interest or confidence in the sector. The decline in trading volume for DOGE, SHIB, and PEPE further contributes to the market downturn.

4. Crypto Liquidations: The recent drawdown in the crypto market has led to significant liquidations of leveraged positions, including DOGE, SHIB, and PEPE longs. Over $434 million in leveraged positions were liquidated in the past 24 hours, exacerbating selling pressure on memecoins.

Overall, the combination of weakening market structure, declining trading volume, and widespread crypto liquidations has contributed to the crash in memecoin prices on June 18. Traders should monitor technical indicators and market sentiment closely to assess potential recovery opportunities.