Is Meme Coin Season Back? 3 Signs December Could Get Wild Again
Three signals, including strong recent performance and stabilizing dominance, suggest meme coins might see a comeback in December.Summary
Despite the high risk of significant losses, meme coins attract retail investors due to their potential for high returns. The market capitalization for meme coins recently increased by 9.4% to $48.3 billion, prompting speculation about a new season. Three key signals suggest a potential comeback in December. First, the sector showed strong recent performance, with categories like Solana Meme and Pump.fun Ecosystem ranking among the best performers over the last seven days, with some coins rising at the end of November. Second, meme coin dominance over the total altcoin market cap has stabilized for nearly two months, mirroring a pattern that preceded a major rally in Q3 2024, suggesting weakening panic-sell pressure. Third, technical indicators show a bullish divergence on the daily Relative Strength Index (RSI) for meme coin market capitalization, where the market cap made a lower low while the RSI made a higher low, indicating weakening selling pressure and potential reversal. Investors are cautioned that meme coins move rapidly in both directions and require careful position sizing.
(Source：BeInCrypto)