Memecoins Surge After Holidays as PEPE, POPCAT, and MOG Lead Rally

After the holiday lull, memecoins made a strong resurgence with traders going back to the market with fresh risk appetite. The information provided by CoinMarketCap indicates that PEPE has been increasing by 32 percent within one session, and POPCAT and MOG have already increased by nearly 20 percent each, spearheading a sweeping of the memecoin industry. Other than the best performers, other trending memecoins hit double-digit returns, such as FLOKI, Dogwifhat (WIF), and Fartcoin. The coordinated turn indicates the synchronized capital rotation as opposed to the independent token news, which supports the speculative character of the rally.

Volume Signals Brokerage Rebirth

The trading volume in the sector was above 5 billion of money which was a drastic rise in terms of trading compared to the lack of liquidity witnessed during the holiday season. Increased volumes imply new capital into memecoins and not short covering on a short-term basis. The rally came at the same time when Bitcoin was sitting well above $95,000, which frequently serves as a psychological floor in the expansion of market risk-taking. Bitcoin consolidation often drives traders to allocate funds to assets with high beta such as memecoins in search of excessive returns. Even with the rosy price movement, technical indicators call on investors to be cautious.

Influencer Sentiment Increases the Move

Crypto influencers promoted the euphoria on the social fronts, driving speculative engagement and driving up prices. Although social momentum has the ability to prolong rallies, it also drives volatility to a higher level in case the sentiment changes. The concept of memecoins is highly liquidity and sentiment-dependent and therefore relies on momentum instead of usefulness. The rallies of this type without constant inflows often disappear as soon as they appear.

The memecoin boom after the holiday provided intense returns throughout the industry with PEPE on top at 32% and a number of others registering in the double-digit returns. The stabilization of the prices and the growth of the trading volumes sparked speculative inflows into the risky assets. Nevertheless, high levels of RSI and the history of the trend indicate that traders need to be careful because memecoin rallies tend to turn around within the same time as they launch.