Memecoins: Going to Zero or Coming Back Strong?

During the current crypto downtrend, memecoins have been hit harder than a mime at a rock concert 🤕. Although top-ranking memecoins $DOGE, $SHIB, and $PEPE still have large market caps, are they on a trajectory to zero, or can a renewal of the bull market still send them to higher highs? 🤔

Memecoins at the mercy of the market

It’s one thing to look at the state of the Bitcoin price and sigh dramatically. It’s quite another thing to be holding memecoins and watching your investment disappear faster than a free donut at a weight-watchers meeting 🍩.

In a rampaging bull market there is no better place to be than a memecoin that everyone else is also getting behind. Memes can fly 100s of percent to the upside in short periods of time, but it must be acknowledged that the opposite can also take place. Remember, what goes up must come down… sometimes with a dramatic crash and a lot of yelling.

The problem with memecoins is that generally they don’t have any backing whatsoever. They are just free-floating tokens that are tossed around on the whim of the market. Like a toddler with a temper tantrum, they are driven purely by emotion. 🤪

Is $DOGE ridiculously overvalued?

Dogecoin (DOGE) is the foremost of the memecoins, but that is probably only because it appears to be a great favourite of Elon Musk. The general view is that one day Musk just might turn this coin into a form of payment, perhaps on the X platform, or maybe in one of his other companies. 🤞

For a memecoin riding on such a hope and a prayer, a market capitalisation of $25.8 billion does seem ridiculously over-valued. It’s like paying $100 for a used coffee mug that says “World’s Best Dad” on it. Time will tell if this is indeed the case.

A $DOGE bounce, or a continued bleed?

From a technical analysis perspective, it can be seen that the $DOGE price has come down to the deepest of the Fibonacci levels at the 0.786. This also marks quite strong support, so a bounce from here could be a likely occurrence. 

If, on the other hand, that $17.8 billion market cap continues to bleed out, the next support levels can be found at $0.14, and then $0.10. The 200-day moving average has been lost, and therefore, a marked turn around in market sentiment needs to happen in order to get $DOGE back on track.

$SHIB at critical horizontal support

Shiba Inu (SHIB) is the other memecoin that professes to have some kind of utility, but this appears to be in the shape of a small ecosystem which does not appear to promise anything groundbreaking. It’s like saying your goldfish has a “competitive swimming career”

A $7.3 billion market cap is still an enormous sum for this memecoin, and so it will be interesting to

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2025-03-10 15:09