Meme Coins Poised for a December Breakout? Watch These 3 Key Signals

Jakarta, Pintu News – Meme coins often lead to huge losses, but remain attractive to retail investors due to their high profit potential. It is currently too early to make definitive predictions about the start of the new meme coin season.

However, the market has shown a number of signals that point to a possible return of the trend. What are these signals? The full explanation will be discussed in the next section.

3 Signals that Point to the Return of Meme Coin in December

Today, CoinGecko reported that the market capitalization of meme coins rose by 9.4%, reaching the $48.3 billion mark.

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Is this just a temporary rally or the start of a longer bullish trend? The following three signals hint that the return of the meme coin could be underway.

1. Strong Performance of the Meme Coin Sector Recently

The first signal comes from the meme coin’s strong performance in recent days. As the market started to recover in early December, Bitcoin price managed to climb back above $90,000. The altcoin market capitalization also showed a V-shaped recovery pattern. In the midst of this recovery, the meme coin sector actually recorded sharper gains.

According to CoinGecko data, in the past seven days, meme coin categories such as Solana Meme, Pump.fun Ecosystem, and frog-themed meme coins were among the seven best performing categories in the market. Interestingly, the group of meme coins from the Pump.fun ecosystem (PUMP) took second place with an average increase of more than 12%.

Some meme coins even started to rise before the overall altcoin market moved up. Coins like Turbo , Fartcoin , PIPPIN, and SPX have started to show positive movement since late November.

Overall, the Solana ecosystem is still the main center of attention for meme coin investors. Although the trading activity of meme coins on the Solana network has dropped dramatically, one small trigger can drive the next big price spike.

“Memes isn’t dead, they’re just taking a break,” said Stalkchain.

This is because meme coins generally have lower liquidity than large altcoins. As a result, their price movements tend to be more volatile – and this is precisely what makes them attractive when the market starts to recover.

The list of today’s biggest price movers is also dominated by meme coins such as TURBO, Brett , Pudgy Penguins (PENGU), and Useless (USELESS).

2. Meme Coin’s Dominance Begins to Stabilize and Shows a Base Formation Pattern

Data from CryptoQuant shows that meme coin dominance – i.e. the proportion of meme coin market capitalization to total altcoin capitalization – has been flat for almost the past two months.

This flat dominance ratio indicates a panic weakening of selling pressure, although the price of meme coins may still be able to drop further.

A similar pattern emerged in the third quarter of 2024, where meme coin dominance was flat for three months before finally entering the strongest rally phase in the history of the meme coin market.

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3. RSI Indicator Shows Bullish Divergence on Meme Coin Market Capitalization

The third signal comes from technical analysis, specifically the daily RSI indicator on meme coin’s market capitalization. The RSI indicator is currently forming a bullish divergence pattern, where the market capitalization is printing a lower low, while the RSI is printing a higher low.

This pattern signals a weakening of selling pressure, as well as a strong signal of a potential price reversal. This is further reinforced by the RSI bouncing off the oversold area around the 30 level.

Despite this, the price movements of meme coins remain very fast in both directions. Prices can rise dramatically, but they can also plummet quickly. Therefore, including meme coins in a portfolio should be done with careful consideration and strict risk management – including wise position sizing.

FAQ

What is a meme coin?

Meme coins are a type of cryptocurrency that are often inspired by popular internet jokes or memes. Examples include Dogecoin and Shiba Inu .

Why are coin memes making a comeback?

The increase in market capitalization and stabilization of meme coin dominance indicate growing interest and potential recovery in the sector.

What is RSI and how does it work?

The Relative Strength Index (RSI) is an indicator in technical analysis that measures the speed and change of an asset’s price movement, helping to identify overbought or oversold conditions.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. Meme Coin Market Cap Showing Signs of Bottoming. Accessed on December 4, 2025