- The global memecoin market declined 8.7% on Monday, with the sector’s total valuation plunging towards $100.6 billion.
- Dogecoin’s slight 5.1% loss outperformed the market average as traders anticipated a Trump-fueled DOGE rally.
- Ai16z remains the most sought-after memecoin on Coingecko, attracting investor interest despite its 5% price reversal.
Fartcoin defied external bearish catalysts to enter an 11% rally in the daily time frame.
Memecoins suffered intense downward volatility on Monday as the sector’s valuation plunged 8.7% to $100.6 billion.
Leading market indicators reflect three prominent memecoins issuing early rebound signals as traders position themselves for upcoming events.
Memecoin market cap declines by 8.7% as bearish sentiment dominates.
The memecoin sector has been among the hardest hit segments of the cryptocurrency market on Monday as global crypto valuations faced another significant downturn.
The selloff was fueled by growing inflation concerns after stronger-than-expected U.S. jobs data was released last week.
Investors are bracing for a possible rise in inflation, which could reduce the likelihood of further interest rate cuts from the Federal Reserve (Fed) in the first quarter of 2025.
With the consumer price index (CPI) scheduled for release on Wednesday, market volatility has increased as U.S. traders recalibrate their positions ahead of this key. economic data.
The heightened uncertainty was particularly evident in the memecoin market, where valuations fell sharply amid fears of lingering macroeconomic headwinds.
Memecoin sector performance, January 13, 2025 | Source: CoinGecko
The global memecoin market capitalization plunged 8.7% on Monday, settling at $100.6 billion. Industry leader Dogecoin (DOGE) fell 5% over the past 24 hours to $0.3221, a 17.7% decline over the past seven days.
Likewise, Shiba Inu (SHIB) fell 6.9% during the day to trade at $0.00002027, accumulating a weekly decline of 16.8%.
Meanwhile, Pepe (PEPE) saw the steepest daily decline among the top memecoins, losing 10.7% to $0.00001601, extending its seven-day loss to 23.9%.
Despite the bearish momentum, some tokens in the memecoin sector are showing resilience and signaling a potential recovery as traders focus on the second half of January 2025.
Dogecoin
Dogecoin (DOGE) fell 5% on Monday, outperforming the memecoin sector’s average loss of 8.7%.
DOGE’s relative resilience signals potential bullish catalysts that counteract broader market weakness.
Notably, the second inauguration of former US President Donald Trump, scheduled for January 20, 2025, has sparked renewed interest in Dogecoin.
This follows the creation of the Department of Government Efficiency (DOGE), a federal agency aimed at streamlining government functions, intriguingly named after the popular memecoin.
Adding fuel to the speculative fire, Tesla CEO Elon Musk, now in an advisory role within the administration, has a history of influencing DOGE’s price trajectory.
Despite macroeconomic headwinds, these developments have reignited optimism in DOGE markets.
Traders remain on guard as speculative narratives continue to evolve.
Musk’s involvement has historically coincided with significant volatility in DOGE prices, and market participants are well aware of his ability to influence opinion with a single tweet.
Dogecoin Price Forecast: DOGE Shows Strength as Traders Eye Trump Inauguration
Dogecoin’s daily chart reflects the indecision, with the price closing at $0.3334 near the lower Bollinger band at $0.2883.
Bollinger bands reveal contracting volatility, a precursor to a possible breakout.
If DOGE breaks above the middle band at $0.3396, the bullish momentum could extend to $0.3908, the upper resistance band.
This bullish scenario aligns with potential investor optimism heading into Trump’s inauguration.
Dogecoin Price Forecast | DOGEUSD
However, downside risks remain. The MACD line (-0.00045) trending below the signal line (-0.00466) suggests continued bearish momentum.
A break below $0.2883, the lower Bollinger band, could trigger cascading sell orders, targeting the December low at $0.2500.
The near-term outlook remains balanced, with DOGE traders monitoring crucial technical levels while speculating on broader macro and geopolitical catalysts.
Ai16z
The Ai6z token continues to attract attention after becoming the most searched memecoin on CoinGecko, reflecting increased investor interest despite the broader market downtrend.
Trading at $1.0629 at press time, the Solana-hosted memecoin maintained firm support above $1, demonstrating its resilience amid a 5% price reversal.
This growing social popularity, coupled with strong technical levels, positions Ai6z as a noteworthy memecoin to watch in January 2025.
Ai6z Price Forecast: $1.5 Breakout Remains Viable if $1 Support Holds
Ai6z price action is showing the first signs of consolidation after a recent pullback. The Bollinger bands suggest a decrease in volatility, with the price stabilizing near the lower band at $0.5822.
If the bulls manage to reclaim the middle band at $1.5403, the bullish momentum could extend up to $2.4983, the upper resistance band.
This bullish scenario aligns with rising search interest, which could spur speculative buying.
Ai16z Price Prediction
Conversely, downside risks emerge as the RSI oscillates at 43.99, reflecting weakening momentum below the neutral level of 50.
Failure to hold $1 support could trigger a cascade of sell-offs, targeting the lower Bollinger band.
Future trading sessions will likely determine whether Ai6z can capitalize on its growing popularity and social sentiment to overcome technical resistance.
Farcoin
Fartcoin (FART) became a notable player in the memecoin sector on Monday, rallying 11.6% intraday to surpass $0.80.
Trading above $0.80, the Solana-hosted AI agent narrative token reached a market cap of $830 million as of January 13.
The memecoin sector saw an overall decline of 8.9% on the day, highlighting Fartcoin’s resilience amid a broader bearish backdrop.
The gains indicate that the majority of current Fartcoin holders remain reluctant to sell, even as the Fed’s expected hawkish monetary policy continues to apply downward pressure on risky assets.
As the global crypto sector grapples with macroeconomic headwinds, Fartcoin’s ability to defy the trend positions it as one of the memecoins to watch for the remainder of January 2025.
The performance of FART tokens also highlights the growing interest in niche narratives within the cryptocurrency market, particularly those combining AI-driven innovation and meme culture.
Farticin Price Forecast: Fartcoin Challenges Bears with 11.6% Gains
Technical indicators on Fartcoin price prediction charts suggest a mixed but potentially bullish move. outlook.
The Bollinger Bands on the daily chart show a tightening range, indicating reduced volatility and paving the way for further momentum.
The upper band at $1.47 provides immediate resistance, with support at $0.98. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator exhibits a bearish alignment, with the MACD line (-0.054) below the signal line (0.098).
However, the histogram signals a decline in bearish momentum, hinting at a potential bullish crossover.
Farcoin Price Prediction
A break above $1.08 could pave the way for an expansion-led rally towards $1.46 Bollinger Bands and renewed purchasing pressure.
The resilience of Fartcoin holders amid broader market weakness strengthens this case.
Conversely, failure to hold above $1.02 could trigger a correction towards $0.78, which is consistent with bearish signals from the Parabolic SAR.
A growing downtrend in the MACD would amplify the likelihood of a retracement.