Meme coins often result in significant losses, yet they remain an attractive option for retail investors due to their high potential returns. It is still early to make strong predictions about a new meme coin season. However, the market has shown several signals that suggest a possible comeback.
What are those signals? The following sections provide a detailed breakdown.
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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 just a temporary rally or the start of a longer bull run? These three signs suggest the answer.
1. Strong Recent Performance From the Meme Coin Sector
The first signal comes from the strong performance of meme coins in recent days.
As the market recovered in early December, Bitcoin climbed back above $90,000. The altcoin market cap also showed a V-shape recovery. During the same period, the meme coin sector delivered stronger gains.
CoinGecko data shows that over the past seven days, Solana Meme, Pump.fun Ecosystem, and frog-themed meme coins ranked among the seven best-performing categories in the market. Notably, the Pump.fun ecosystem meme coin group ranked second, with an average gain of over 12%.
Top Performing Categories Over The Past 7 days. Source: CoingeckoSponsored
Some meme coins started rising earlier than the broader altcoin market. Coins like TURBO, FARTCOIN, PIPPIN, and SPX began moving at the end of November.
Overall, the Solana ecosystem remains the primary focus of meme coin investor attention. Although meme coin trading activity on Solana has dropped sharply, a single spark could trigger another explosive surge.
The reason is that Meme coins generally have weaker liquidity than major altcoins. As a result, they tend to produce larger price swings. This makes them more appealing when the market begins to recover. Today’s list of top gainers included many meme coins such as TURBO, BRETT, PENGU, and USELESS.
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2. Meme Coin Dominance Is Stabilizing and Suggesting a Bottoming Pattern
CryptoQuant data shows that meme coin dominance—measuring meme coins’ share of total altcoin market cap—has moved sideways for nearly two months.
A flat dominance ratio signals weakening panic-sell pressure, even if prices may still drop further.
Memecoin Dominance in Altcoin Markets. Source: CryptoQuant.A similar pattern appeared in Q3 2024. Meme coin dominance went sideways for three months before entering the strongest meme coin rally in market history.
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3. RSI Indicators Point to a Bullish Divergence in Meme Coin Market Cap
The third signal originates from a technical analysis perspective, utilizing the daily RSI of the meme coin market capitalization.
Meme Coin Market Cap and RSI. Source: TradingViewThe RSI has formed a bullish divergence. The market cap created a lower low, while the RSI created a higher low.
This pattern shows weakening selling pressure. It also carries strong reversal implications, especially because RSI bounced from the oversold level near 30.
Meme coins still move fast in both directions. They rise quickly but can crash just as fast. Adding meme coins to a portfolio requires careful consideration and strict position sizing to minimize risk.
Source: https://beincrypto.com/meme-coin-market-cap-showing-signs-of-bottoming/
