Memecoin explodes again. Is this the beginning of a major bull market rebound?

Author: David C, Bankless; Translator: Deng Tong, Golden Finance

Memecoins are breaking out again, with BONK up about 60% in the past seven days, PEPE up about 50%, and POPCAT (the tokenized version of the OG internet meme) up about 300%. Is this the first big driver of the next major rally in the sector?

Whatever happens next, Bitcoin’s rebound has certainly played a role in this return, as have CEX listings, both in perpetual and spot form:

• Today, PEPE perpetual contracts went live on Coinbase International after a delay, with PEPE up about 15%.

• Last week, on April 18, POPCAT spot began trading on the MEXC exchange, which was the catalyst for its seven-day run of gains.

• On Thursday, April 25, WIF perpetual contracts will go live on Coinbase International, allowing non-US users to trade the beloved dog and his hat with leverage.

Focusing on PEPE, its technical picture shows positive momentum, with its EMA10 (average price over the past 10 days) targeting a breakout above the EMA55 mark, which suggests a bullish phase.

Additionally, with a neutral RSI of 51 (meaning a balanced number of bullish and bearish holders) and a weak ADI of 20, PEPE’s data suggests that bearish forces are waning, which sets PEPE up well.

PEPE’s social analysis also shows continued growth, a key indicator for emerging markets such as cryptocurrencies, where sentiment on social media drives price action to a large extent, rather than fundamentals.

Similar positive social trends can be seen in recent engagement data for WIF and POPCAT.

These trends suggest that while memecoins show the biggest dips when market conditions become risky, they also show the biggest surges when investor sentiment shifts.

If Bitcoin continues to hold strong, we can expect risk appetite in the market to revive as well, so memecoins becoming increasingly hot in the coming weeks could confirm if the sector is back on the upswing again!