- The memecoin sector is up 1.7% over the past 24 hours, indicating that the majority of traders are reluctant to cash out their weekly profits early.
- The recently launched TRUMP and MELANIA tokens remain the top trending memes despite the recent takedown.
- Technical indicators suggest that DOGE, BONK and FLOKI could regain their momentum in the coming weeks.
Memecoin’s overall valuation crossed the $117 billion mark on Tuesday as President Donald Trump officially replaced Gary Gensler as head of the Securities & Exchange Commission (SEC), marking a paradigm shift for crypto regulation. currencies in the United States. Analyze key market events and technical aspects analysis signals, some prominent meme tokens are showing bullish outlooks for the coming weeks.
Memecoin sector nears $120 billion valuation as Trump fuels new capital inflows
Memecoin traders continued to reap profits on Tuesday as Trump’s latest moves sparked global interest in the sector.
While legacy tokens like PEPE and SHIB have struggled, with recent influxes of traders entering the memecoin market with TRUMP and MELANIA tokens pushing the sector’s valuation to record levels.
The charts notably show that TRUMP and MELANIA dominated media discussions until Inauguration Day.
However, investors are now strategically reinvesting their profits into more established mega-cap memecoins.
Memecoin sector performance, January 21, 2025 | Source: Coingecko
According to the latest data from CoinGecko, the valuation of the memecoin sector surpassed $118 billion on Tuesday, an increase of 1.7% in 24 hours.
Forest Bai, co-founder of cryptocurrency investment firm Foresight Ventures, also highlighted Trump’s influence on the current market trend.
“I am very optimistic about the cryptocurrency market after Trump’s inauguration.
I expected him to use a series of measures, like lowering interest rates, creating national reserves, encouraging businesses to buy cryptocurrencies or introducing crypto-friendly policies -currencies.
But in the end, Trump chose the most direct approach: launching a memecoin, which immediately attracted millions of new users. »
– Forest Bai, co-founder/CTO Foresight companies.
Meanwhile, the top three trending tokens – TRUMP, MELANIA, and Dogelon Mars – saw double-digit losses during the same period.
These rare market dynamics suggest that traders are taking profits on low-cap tokens and reallocating their funds towards high-cap memecoins.
This is evidenced by notable gains in Dogecoin, BONK and PEPE as investors reshuffle their portfolios following Trump’s inauguration events.
DOGE saw significant price increases, BONK saw strong upward momentum, and PEPE also saw notable gains.
When the most sought-after asset status coincides with double-digit losses, it often indicates that holders are actively monitoring prices, potentially triggering panic selling.
If TRUMP and MELANIA tokens continue to decline from their current overbought conditions, analysts suggest that DOGE, BONK, and PEPE could attract much higher cash flows, building on their current bullish momentum.
Dogecoin Price Forecast: $0.40 Resistance Level Under Threat
Dogecoin price surged 8.48% on Tuesday, reaching $0.3846 as traders took advantage of strong bullish momentum.
The chart shows DOGE reclaiming the mid-boundary of the Donchian Channel (DC) at $0.3718, signaling growing optimism.
DC’s upper resistance near $0.4340 is the immediate test for the bulls.
The volume spikes suggest renewed interest in DOGE, further supported by the accumulation/distribution line (ADL), which continues its steady ascent, indicating strong buying pressure.
Dogecoin Price Forecast | DOGEUSDT
In a bullish scenario, a break above $0.4000 could attract further capital inflows, propelling DOGE towards $0.4500, aligning with December highs.
Sustained volume near 4.24 billion reinforces this outlook, while a decisive push beyond $0.4340 could trigger speculative momentum.
Conversely, failure to breach the $0.4000 resistance could expose DOGE to downside risks.
A decline below the DC midline at $0.3718 would shift sentiment, potentially driving prices towards the lower boundary at $0.3096.
Such a move, compounded by the ADL’s declining momentum, could encourage traders to take profits.
Current conditions favor the bulls, but $0.40 remains a critical inflection point.
BONK Price Prediction: $0.00004 Breakout in Sight
Bonk emerged as the top-ranked memecoin in the Solana network on Tuesday.
If the market liquidity declines following the euphoria of Trump’s inauguration, BONK could maintain its resilience.
As the leading meme token on Solana, BONK’s unique positioning could attract sustained investor interest.
This narrative puts BONK in the spotlight with a potential breakout to $0.00004,000 within reach in the coming weeks.
Bonk soared 16.91% on Monday, hitting $0.00003484 as it advanced alongside broader market enthusiasm.
The chart indicates DOGE’s breakout above the volume-weighted average price (VWAP) at $0.00003287, suggesting a strengthening uptrend.
Keltner channel bands highlight potential resistance at $0.00004048, marking a key objective for further upside.
The MACD indicator shows a bullish crossover with ascending histogram bars, confirming the bullish momentum.
BONK Price Forecast | BONKUSDT
In the bullish scenario, sustained buying volume could propel BONK towards the upper Keltner channel at $0.00004048.
A break above this level would likely energize the bulls, with $0.00004500 the next key resistance.
Strong support at $0.00003287 (VWAP) supports this outlook, boosting trader confidence.
Conversely, if BONK fails to sustain its rally, a break below the Keltner Channel mid-level at $0.00003119 could trigger downside pressure.
This move could expose DOGE to a retest of the lower band below $0.00002190, thus changing sentiment.
PEPE Price Forecast: More Gains Ahead After Reclaiming $2 Billion Market Cap
PEPE showed resilience after reclaiming the $2 billion market capitalization, rebounding from recent lows.
On the daily chart, PEPE is currently trading near $0.00001610, slightly above its VWAP ($0.00001573), signaling an upward bias.
THE Bollinger Bands (BB) have tightened, indicating decreasing volatility and a potential breakout in either direction.
In a bullish scenario, successful defense of PEPE support at $0.00001573 and a sustained move towards the BB midline of $0.00001705 could spark further bullish momentum.
If buyers reclaim the $0.00001849 resistance, PEPE could test the BB upper boundary at $0.00002199, supported by improving sentiment.
PEPE Price Forecast | PEPEUSDT
The relative strength index (RSI) at 41.49 remains moderate but is trending upward, suggesting the possibility of strengthening momentum.
Conversely, failure to hold $0.00001573 as support may result in a retest of the BB lower boundary at $0.00001499.
A close below this level could dampen bullish enthusiasm, opening the door to further declines.
For now, PEPE remains positioned for a potential rebound, supported by stabilization indicators.