The memecoin sector has seen a notable uptick, growing 1.7% in the last 24 hours. This suggests that many traders are holding onto their positions rather than cashing out weekly profits. Newcomers like TRUMP and MELANIA tokens continue to dominate trends, despite recent pullbacks. Meanwhile, technical indicators point to potential momentum gains for established memecoins like DOGE, BONK, and PEPE in the coming weeks.
With President Donald Trump’s recent appointment signaling a shift in U.S. cryptocurrency regulation, the memecoin market capitalization surpassed $117 billion. This change has sparked renewed interest and capital inflow into the ecosystem, creating both opportunities and volatility for investors.
Market Overview: Capital Inflows and Sector Valuation
The memecoin sector is flirting with a $120 billion valuation, fueled largely by recent political developments. Traders have been actively capitalizing on this bullish sentiment, reinvesting profits from newer tokens into more established, large-cap memecoins.
While legacy tokens such as PEPE and SHIB faced short-term struggles, the influx of capital into TRUMP and MELANIA tokens pushed the entire sector to new heights. Media attention peaked around Inauguration Day, but investors are now rebalancing portfolios toward assets with longer track records.
According to recent data, the memecoin sector’s valuation exceeded $118 billion, marking a 1.7% increase within a day. This movement indicates a strategic shift where traders are taking profits from lower-market-cap tokens and reallocating into majors like Dogecoin, BONK, and PEPE.
Forest Bai, Co-Founder and CTO of Foresight Ventures, highlighted the impact of Trump’s approach:
“I’m very optimistic about the crypto market following Trump’s inauguration. I had expected he might use a range of measures—like lowering interest rates, establishing national reserves, encouraging businesses to buy crypto, or introducing crypto-friendly policies. But in the end, Trump chose the most direct approach: launching a memecoin, which immediately brought in millions of new users.”
Despite being top-trending tokens, TRUMP, MELANIA, and Dogelon Mars registered double-digit losses recently. This often signals that holders are closely monitoring prices, which can lead to panic selling. Should this trend continue, analysts believe major memecoins could absorb the diverted liquidity.
Dogecoin Price Analysis: Key Resistance at $0.40
Dogecoin saw an impressive rise of 8.48% recently, reaching $0.3846. This surge reflects renewed trader confidence and strong bullish momentum.
Technically, DOGE reclaimed the middle boundary of the Donchian Channel at $0.3718, which is often a sign of growing optimism. The next critical resistance level lies near $0.4340. Supported by rising volume and a steadily increasing Accumulation/Distribution Line, buying pressure remains robust.
In a bullish scenario, breaking above $0.4000 could attract further capital inflows, potentially driving DOGE toward the $0.4500 mark. This would align with previous December highs, especially if trading volumes remain around 4.24 billion.
On the flip side, failure to break the $0.4000 resistance could expose DOGE to downward pressure. A fall below the $0.3718 support might lead to a test of the lower Donchian boundary at $0.3096. Weakening momentum in the ADL indicator could accelerate profit-taking.
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BONK Price Prediction: Eyeing the $0.00004 Level
BONK, the leading memecoin on the Solana blockchain, rallied significantly with a 16.91% gain, reaching $0.00003484. Its unique positioning within the Solana ecosystem may help it stay resilient even if market liquidity declines post-inauguration euphoria.
The token broke above its Volume-Weighted Average Price (VWAP) at $0.00003287, indicating a strengthening bullish trend. The Keltner Channel suggests next resistance near $0.00004048, while the MACD indicator shows a bullish crossover with ascending histogram bars.
If buying volume persists, BONK could challenge the $0.00004048 resistance and possibly extend gains toward $0.00004500. The VWAP at $0.00003287 should serve as strong support.
However, if the token fails to hold its momentum, a drop below the mid-Keltner level of $0.00003119 might trigger a retest of the lower band around $0.00002190.
PEPE Price Outlook: Sustaining the $2 Billion Market Cap
PEPE has demonstrated notable resilience after reclaiming a $2 billion market cap. It is currently trading around $0.00001610, slightly above its VWAP of $0.00001573, indicating a mild upward bias.
The Bollinger Bands have tightened, suggesting reduced volatility and a potential impending breakout. The Relative Strength Index (RSI) is at 41.49 and rising, hinting at building momentum.
A bullish scenario could see PEPE defend the $0.00001573 support and push toward the Bollinger midline at $0.00001705. Breaking the $0.00001849 resistance may then open a path to the upper band at $0.00002199.
If support fails, however, PEPE could fall to the lower Bollinger Band at $0.00001499, which may dampen short-term bullish sentiment.
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Frequently Asked Questions
What are memecoins?
Memecoins are cryptocurrencies inspired by internet memes or jokes. Unlike traditional cryptocurrencies, they often originate from social media trends and community engagement rather than technological utility. Examples include Dogecoin, Shiba Inu, and PEPE.
Why is the memecoin market rising?
Recent regulatory shifts and high-profile endorsements have increased public interest and investment in memecoins. The entry of new participants and reinvestment from traders into major memecoins have also driven valuations upward.
Which memecoins are expected to perform well?
Based on current technical and market indicators, DOGE, BONK, and PEPE show potential for short- to mid-term growth. However, always conduct personal research and consider market risks.
How does regulation affect memecoins?
Changes in regulatory leadership and policy can significantly impact investor sentiment. Crypto-friendly regulations tend to boost confidence and attract capital, while uncertainty or restrictive policies may cause volatility or sell-offs.
What is the risk of investing in memecoins?
Memecoins are highly volatile and speculative assets. Prices can change rapidly based on social media trends, celebrity endorsements, or market sentiment. Only invest what you can afford to lose.
Where can I track memecoin prices?
Reputable cryptocurrency tracking websites offer real-time price data, market cap rankings, and volume information. Always use reliable sources for making investment decisions.