Memecoin Market May Be Breaking Down, Santiment Warns
Memecoins have taken a beating recently, and what looks like a rout may be closer to a turning point than many traders expect. Official Trump (TRUMP), the politically tied token linked to US President Donald Trump, retraced sharply from its launch highs after the initial hype faded. Heavy concentration of supply in a few wallets left these projects vulnerable to rapid swings, and some gains from last year were erased in short order.Related Reading
Watch The Crowd’s Turning Point
Contrarian traders will point to the admission of defeat across social feeds as a potential signal to start watching for a bottom.
That approach is risky. Losses can deepen before the market finds a floor, and sellers may return on any short-lived recovery.
Still, history shows that extreme pessimism can preface meaningful rebounds, especially when broader market pressure eases and liquidity returns.
Featured image from Pexels, chart from TradingView
About Author
