Path to the center of the crypto universe: Memecoin awaits recovery signals

A summary of recent developments in the memecoin market can help you better understand the complex situation in this segment. Over the past few months, crypto market indicators have repeatedly sent warning signals: memecoin has fallen to its lowest level since 2022, marking a significant turning point in the market cycle.

Memecoin hits lowest level of 2022: Silence before the storm

Data from CryptoQuant shows that memecoin’s market share in the altcoin market has sharply collapsed: from 0.11 at the end of 2024, this figure is now only 0.04, returning to 2022 levels. This is not an isolated phenomenon but a systematic decline affecting the entire segment.

Former “stars” like DOGE, SHIB, and PEPE are all not immune to the overall downturn. CoinGecko confirms that since the peak at the end of last year, there has been a continuous and widespread decline across all memecoin categories, from culturally themed to politically themed coins.

What is more concerning is that no alternative themes have emerged to fill the gap. Historically in the crypto market, one trend is often replaced by another, but the current situation is entirely different. Even small retail investors have pulled out of this market.

Ki Young Ju, CEO of CryptoQuant, recently commented directly on this situation, stating that the memecoin market has entered a true freeze phase.

Market pause or just accumulation? Complex signals from top altcoins

However, not everyone agrees entirely with this pessimistic view. Under comments from experts, mixed reactions have emerged. Some investors see the current dip as a disguised buying signal, arguing that memecoin is just “dormant” and not necessarily gone forever.

RunnerXBT, an influential figure in the community, even considers the current situation one of the strongest bullish signals in this phase. This perspective is based on a historical law: crypto cycles always repeat, and boring periods are often accumulation phases before the next big jump.

Memecoin, closely tied to internet culture, has the potential to quickly revive from just a rumor or a statement from influential figures. This viral potential remains intact, even if current momentum differs.

Hidden opportunities: When memecoin’s sleep might not be the end

Current technical indicators offer hopeful signals. According to CoinGlass, Open Interest in DOGE, SHIB, and PEPE futures contracts shows positive movement. This indicates that retail investors are gradually returning to the market.

DOGE is accumulating in a balanced zone, with RSI gradually rising toward the neutral zone and MACD following closely. These signs suggest that buying demand is gradually returning. SHIB and PEPE also show similar patterns, with sideways price movement but support levels holding firm.

Recent data shows:

• DOGE at $0.09, down 0.48% in 24 hours with a trading volume of $39.27M
• SHIB at very low levels, up 1.87% in 24 hours with a volume of $1.36M
• PEPE at very small levels, up 2.12% in 24 hours with a volume of $7.01M

The crypto market seems to be on pause, waiting for a strong catalyst to trigger the next move.

Conclusion: Prematurely writing off memecoin could be a mistake

It would be premature to conclude that memecoin is completely finished. Last August, after a sudden crash, this segment proved its resilience and became a leading indicator in reigniting the entire crypto market.

The community around memecoin remains active, and their viral potential is still intact. The current silence may just be a consolidation phase before memecoin finds its way back into the center of the crypto universe. Instead of declaring its death, perhaps we should learn to wait and watch for potential recovery signals.