Memecoin Strength Returns After Historic Market Decline: A Setup For A Comeback?
The memecoin market went through a brutal reset in 2025, marking one of its sharpest downturns since the sector became a dominant force within crypto speculation. Following the euphoric memecoin mania that peaked and ultimately collapsed in November 2024, selling pressure steadily took control. Liquidity dried up, momentum faded, and most memecoins entered prolonged drawdowns that significantly underperformed the broader market. However, recent price action suggests the first meaningful attempt at stabilization. The market cap has rebounded sharply from the December lows near the $35–38 billion zone and is now trading back above the short-term moving average, reclaiming the $46 billion area. This move is accompanied by a noticeable pickup in volume, indicating renewed participation rather than a purely technical bounce on thin liquidity.Related Reading
Despite this improvement, the broader trend remains cautious. The memecoin market cap is still trading below the longer-term moving averages, which continue to slope downward and act as overhead resistance around the $50–55 billion range. This suggests that while downside momentum has slowed, the market has not yet transitioned into a confirmed uptrend.
In practical terms, the chart points to a relief rally within a broader bearish structure. For memecoins to regain sustained momentum, the market would need to consolidate above current levels and reclaim higher moving averages. Signaling that speculative capital is returning with conviction rather than opportunism.
Featured image from ChatGPT, chart from TradingView.com
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