Is Meme Coin Season Back? 3 Signs December Could Get Wild Again
Meme cash typically lead to vital losses, but they continue to be a sexy possibility for retail buyers resulting from their high potential returns. It remains to be early to make sturdy predictions a couple of new meme coin season. However, the market has proven a number of indicators that counsel a potential comeback.
What are these indicators? The following sections present an in depth breakdown.
3 Signals Suggesting Meme Coins Could Return in December
Today, CoinGecko reported a 9.4% increase in meme coin market capitalization, bringing it to $48.3 billion. Is this only a non permanent rally or the beginning of an extended bull run? These three indicators counsel the reply.
1. Strong Recent Performance From the Meme Coin Sector
The first sign comes from the sturdy efficiency of meme cash in current days.
As the market recovered in early December, Bitcoin climbed back above $90,000. The altcoin market cap additionally confirmed a V-shape recovery. During the identical interval, the meme coin sector delivered stronger features.
CoinGecko information reveals that over the previous seven days, Solana Meme, Pump.enjoyable Ecosystem, and frog-themed meme cash ranked among the many seven best-performing classes available in the market. Notably, the Pump.fun ecosystem meme coin group ranked second, with a median achieve of over 12%.
Some meme cash began rising sooner than the broader altcoin market. Coins like TURBO, FARTCOIN, PIPPIN, and SPX began moving at the end of November.
Overall, the Solana ecosystem stays the first focus of meme coin investor consideration. Although meme coin buying and selling exercise on Solana has dropped sharply, a single spark may set off one other explosive surge.
(*3*)
“Memes aren’t lifeless, however they’re taking a breather,” Stalkchain commented.
The motive is that Meme cash usually have weaker liquidity than main altcoins. As a end result, they have a tendency to provide bigger worth swings. This makes them extra interesting when the market begins to get well. Today’s record of high gainers included many meme cash similar to TURBO, BRETT, PENGU, and USELESS.
2. Meme Coin Dominance Is Stabilizing and Suggesting a Bottoming Pattern
CryptoQuant information reveals that meme coin dominance—measuring meme cash’ share of complete altcoin market cap—has moved sideways for almost two months.
A flat dominance ratio indicators weakening panic-sell stress, even when costs should still drop additional.
An analogous sample appeared in Q3 2024. Meme coin dominance went sideways for 3 months earlier than coming into the strongest meme coin rally in market historical past.
3. RSI Indicators Point to a Bullish Divergence in Meme Coin Market Cap
The third sign originates from a technical evaluation perspective, using the each day RSI of the meme coin market capitalization.
The RSI has fashioned a bullish divergence. The market cap created a decrease low, whereas the RSI created the next low.
This sample reveals weakening promoting stress. It additionally carries sturdy reversal implications, particularly as a result of RSI bounced from the oversold stage close to 30.
Meme cash nonetheless transfer quick in each instructions. They rise shortly however can crash just as fast. Adding meme coins to a portfolio requires cautious consideration and strict place sizing to reduce danger.
The publish Is Meme Coin Season Back? 3 Signs December Could Get Wild Again appeared first on BeInCrypto.
