Meme Coin Market Plunges, But Could This Be the Setup for an Explosive Rebound?

Author

Alejandro Arrieche

Author

Alejandro Arrieche

About Author

Alejandro is a seasoned financial analyst and adept business expert with over seven years of experience in dissecting complex business topics and vital market trends. His insightful writing, which has...

Author Profile

Share

Copied

Last updated:

February 6, 2025 11:47 EST

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Meme coins have taken a heavy hit since their post-election peak, with the sector’s total market cap plunging 37% in the past 30 days to $72.2 billion.

At its December high, the figure stood at $130 billion—meaning nearly $60 billion in value has vanished in under three months.

Some of the worst declines have come from Pepe (-51%), Shiba Inu (-33.2%), and dogwifhat (-61.7%) over the past month.

The only top 10 meme coin to show gains is Official Trump ($TRUMP), largely because it launched at a low price. However, even it now trades 75.6% below its all-time high.

That said, technical indicators suggest a potential turnaround may be on the horizon.

Dogecoin Chart Shows that Meme Coins Could Make a Comeback if This Happens

Dogecoin (DOGE) is often regarded as the Bitcoin (BTC) of meme coins, making its price action a key indicator for the broader meme coin market.

Since hitting a local top in January, DOGE has been on a steady downtrend, with last weekend’s drop pushing it below a key support level.

The decline accelerated after Trump announced plans to raise tariffs on imports from Canada and Mexico, sparking further uncertainty in risk assets.

DOGE briefly dipped below the critical $0.26 support level, with bulls and bears locked in a battle to reclaim it.

A sustained break below this level could trigger a deeper decline, potentially erasing all gains from the post-election rally.

However, if bulls hold the line above $0.26, a strong recovery may be on the horizon.

The Relative Strength Index (RSI) is approaching oversold territory, while the MACD histogram indicates slowing bearish momentum.

A confirmed RSI crossover above the signal line could see DOGE reclaim $0.26 and push toward the $0.30 resistance. While this wouldn’t erase last month’s losses, it could mark the beginning of a turnaround.

For those looking to capitalize on meme coin volatility while mitigating risk, Meme Index ($MEMEX) presents a unique opportunity.

Meme Index Surges to $3.4M as Investors Seek Smarter Meme Coin Exposure

Meme Index ($MEMEX) presale has gained strong traction among investors, offering a structured and risk-managed approach to meme coin investing.

By providing diversified exposure, it caters to those seeking upside potential without the volatility of picking individual tokens.

Through four specialized investment vehicles—Titan, Moonshot, Midcap, and Meme Frenzy—Meme Index ($MEMEX) allows investors to strategically allocate funds based on their preferred risk exposure within the meme coin sector.

Beyond passive exposure, $MEMEX holders also play a key role in shaping these indexes by participating in governance, voting on which assets should be included or removed.

Currently available at a discounted presale price of $0.0159077, $MEMEX presents a strong upside opportunity for early adopters.

To buy $MEMEX, visit the Meme Index website and connect your wallet (e.g. Best Wallet). You can either swap ETH, USDT, or BNB, or use a bank card to make your investment.