Crypto Market Volatility: Meme Coins Drive Rebound After Layer-2 Correction

19.11.2025 05:07 1 sources neutral
BTC BTC $92464.90 +2.30%
ETH ETH $3310.89 +5.93%
STRK STRK $0.11 +3.63%
PUMP PUMP
ICP ICP $3.57 +5.64%

The cryptocurrency market witnessed a dramatic swing over November 18-19, 2025, with a severe correction followed by a sharp rebound. On November 18, the market extended its downturn for the third straight day, with Bitcoin sliding 5.8% to fall below $90,000, erasing its year-to-date gains, and Ethereum briefly dipping under $3,000. Layer-2 tokens were hammered, plunging 7.13%, as Starknet (STRK) collapsed 21% and SOON tumbled over 30%. Despite the broad weakness, Internet Computer (ICP) surged more than 16%, and assets like HYPE and Filecoin posted gains.

On November 19, the market rebounded strongly. Bitcoin edged up 0.43% to reclaim $92,000, while Ethereum rose 2.36% to break above $3,100. Meme coins led the charge, with the sector jumping 4.28%—PUMP gained 7.97% and SPX6900 soared 16.65%. Other sectors showed robust momentum: CeFi climbed 4.02% with WhiteBIT Token up over 21%, AI tokens gained 3.90% as GLM and KITE posted double-digit rises, and Layer 2 tokens rallied 3.78% led by Starknet’s 27% surge. Sector indices, including ssiMeme, ssiAI, and ssiCeFi, rose 4.38%, 2.60%, and 2.29% respectively, signaling renewed optimism amid volatility.

BTC BTC $92464.90 +2.30%
BTC experienced severe volatility with a 5.8% drop below $90K followed by modest 0.43% recovery to $92K. Fundamental sentiment is mixed: positive catalysts include institutional adoption narratives (Saylor/Brunell optimism, potential US reserve status) and reduced selling pressure from Mt. Gox delays. However, negative factors persist - MicroStrategy's paper losses, retail capitulation, and expert warnings of potential $40K scenarios. Short-term recovery appears fragile given the technical oversold condition and high volatility environment. Long-term institutional adoption narrative remains intact but requires stabilization above key support levels.
Technical analysis
Strongly oversold with RSI14 at 24-36 across timeframes. MACD deeply negative (-458 to -770) confirming bearish momentum. Price below all EMAs (20,50) indicating sustained downtrend. Volume elevated suggests capitulation phase. Technicals support rebound potential from extreme oversold levels.
ETH ETH $3310.89 +5.93%
ETH experienced a sharp correction below $3,000 followed by a 2.36% rebound to $3,100, driven by meme coin momentum and sector rotation. Fundamental catalysts include the Ethereum Foundation's interoperability layer proposal for L2 unification, which enhances long-term scalability prospects. However, retail panic selling and high volatility persist. Short-term recovery appears fragile given the technical oversold conditions, while long-term fundamentals remain strong with institutional adoption (Portnoy's $400K ETH purchase) and ecosystem development.
Technical analysis
RSI at 25.71 (15m) and 40.72 (1h) confirms oversold conditions. Price below all EMAs (3085-3096) shows strong bearish momentum. MACD negative across timeframes indicates continued selling pressure, though oversold RSI suggests potential relief rally.
STRK STRK $0.11 +3.63%
STRK experienced extreme volatility, collapsing 21% during the Layer-2 sector correction on Nov 18, then surging 27% in the Nov 19 rebound. This whipsaw action reflects high beta to sector sentiment rather than STRK-specific fundamentals. The dramatic recovery suggests strong speculative interest but also highlights vulnerability to broader market rotations. Short-term direction will depend on whether meme coin momentum sustains or profit-taking resumes. Long-term, STRK remains tied to Layer-2 adoption trends and Starknet ecosystem growth.
Technical analysis
Technical indicators show recovery momentum with RSI(1h) at 59.69 approaching bullish territory. ADX(1h) at 50.33 confirms strong trend direction, while Plus DI(1h) at 36.49 significantly exceeds Minus DI, supporting upward momentum. However, stochastics are overbought on hourly timeframe, suggesting near-term consolidation risk.
PUMP PUMP
PUMP gained 7.97% as meme coins led the market rebound, indicating strong sector rotation from oversold conditions. The fundamental driver is renewed risk appetite following the Layer-2 correction, with meme coins benefiting from high-beta positioning. Short-term momentum appears sustainable given the broad market recovery, though meme coin volatility remains elevated. Long-term sustainability depends on continued retail interest and broader crypto market stability.
Technical analysis
RSI at 30.22 (15m) and 34.32 (30m) shows oversold conditions supporting rebound thesis. ADX at 28.95-47.1 indicates strong trend momentum. Volume surge confirms retail participation in meme coin rotation.
ICP ICP $3.57 +5.64%
ICP demonstrated exceptional strength during the November 18-19 market volatility, surging 16% while most assets declined. This outperformance suggests strong fundamental drivers, likely tied to recent network growth and Web3 infrastructure adoption highlighted in the November 18 news. The coin's resilience during broad market weakness indicates underlying institutional or whale accumulation. Short-term, ICP may consolidate recent gains but maintains bullish momentum for long-term appreciation given its infrastructure positioning amid the AI and Web3 narrative acceleration.
Technical analysis
RSI at 34.98-40.7 across timeframes shows oversold conditions supporting bounce potential. MACD negative but improving, while volume below MA20 suggests consolidation. Strong ADX (22.96-44.38) confirms directional momentum despite recent weakness.
Sources
[LIVE] Crypto News Today: Latest Updates for Nov. 20, 2025 – Bitcoin Steadies Above $92K as L2s, AI Tokens and NFTs Post Moderate Gains
cryptonews.com 20.11.2025 04:45
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