Meme Coins Dogecoin, Shiba Inu, and Pepe In Focus Amid Portfolio Rebalancing

Key Insights:

• Meme coins sink nearly 16% YTD, with Dogecoin, Shiba Inu, and PEPE deep in drawdown.
• Whales are quietly accumulating, with SHIB exchange outflows rising, DOGE flashing historical bottom signals, and PEPE seeing heavy whale orders.
• Bear markets breed meme coin comebacks, and post-loss accumulation could set the stage for another explosive rally.

Meme coins are back in the spotlight after a rough start to 2026 that wiped out early gains and sent the sector down by 15.97% YTD. Dogecoin, Shiba Inu, and Pepe posted weekly double-digit percentage losses, with only Pepe managing a 0.2% recovery in the last 24 hours.

This outcome was not surprising since meme coins run on pure hype, community backing, and FOMO. Lack of robust utility exposes them to severe liquidity bleeds when the market turns bearish. This is why this crypto category faces heavier losses than other cryptocurrencies during major crashes.

However, the tables also turn in their favor during every aggressive bullish phase, and meme coins pump hard. These aggressive comebacks have often resulted in life-changing gains for the lucky few.

Meme Coins Retreat Sharply but Show Signs of Resilience

The recent market downturn has taken a toll on the total meme coin market cap. Cryptocurrencies had a strong start in the first few days of the year, with the total market cap surging from $38 billion in December to $47.7 billion by 5 January.

However, as of today, the market cap has dropped to $33.3 billion according to CoinGecko. While the drop was significant, it revealed some resilience, as the sector retreated on average by about 12% from its December lows.

The top meme coins, especially the dog and cat-themed ones, were among the most affected, while AI-meme coins saw the least amount of losses.

The speculative nature of meme coins may be a double-edged sword, cutting between volatility and resilience. Like cockroaches, these tokens always emerge after a bear

This effect is much greater for big wigs such as Dogecoin, Shiba Inu, and Pepe. As of February 10, 2026, Shiba Inu, DOGE, and PEPE are 93%, 87%, and 86% down from their respective all-time highs.

DOGE, SHIB, and PEPE: Prime Entry Points for Long-Term Bets

After the late 2025 beatdown following Bitcoin topping out at $126,000, these prices feel like the market bottom. Moreover, looking beyond the price and toward on-chain activity, it’s clear the market is still bullish on these coins.

For context, CryptoQuant data showed that more SHIB tokens are exiting exchanges than entering. The 7-day exchange outflow stands at 718.74 million SHIB tokens, which have left exchange reserves over the last week.

The prevailing market FUD has traders losing interest in assets with the highest risk profile. This is despite extreme price drops, which suggest that they may have bottomed out.

Market analyst MasterAnanda noted that DOGE has closed in the red for four consecutive weeks and is now entering the fifth week. According to the analyst, the last time Dogecoin price experienced a strong reversal was the last time it closed five weeks in red.

MasterAnanda believes that Dogecoin is now in a “healthy entry zone,” but warned traders to proceed cautiously in case of another bearish shakedown. As for PEPE, whales were observed loading up across exchanges, mainly on OKX.

Whales often position themselves ahead of the rest of the market, and they tend to be liquid enough to move prices. The fact that whales are still injecting liquidity into the market may underscore long-term bullish confidence.

Counterintuitive Opportunity: Portfolio Rebalancing May Still Favor Meme Coins

It is not surprising that most traders have been adjusting their portfolios recently. This is because the changing investment landscape, shifting liquidity, and market conditions warrant short- and long-term readjustment.

Meme coins have been receiving lower attention compared to other crypto categories for the last few weeks. This is largely because meme coins have a higher risk profile.

As a result, cryptocurrencies like Bitcoin and Ethereum attract more demand. However, meme cryptos may present a counterintuitive opportunity due to their heavily discounted prices. Post-crash accumulation may thus lead to significant gains for the meme coin segment.