Memecoins suffer a sharp pullback: market analysis and short-term outlook

Source: CritpoTendencia Original Title: Meme coins suffer a sharp pullback, what are the prospects for this market? Original Link: The meme coin sector has had a 2026 of green numbers so far. However, investor interest in these assets is far from the peaks of 2024. This opens the door for distrust to cause strong bearish pressure in complex contexts. And precisely, this is what is happening now with meme coins, which are facing a significant decline.

According to data from CoinMarketCap, the sector is experiencing a sharp drop in market capitalization. Over the past 24 hours, sales continue, widening weekly losses. All this caused the market cap to lose the barrier of $40 billion.

According to the cited portal, the market cap of meme coins has lost 15.71% during the last week ending this Wednesday. These red numbers are reflected in the poor performances of most tokens that make up the top 10 of this sector.

For example, representative tokens of the meme coin world like DOGE, SHIB, and PEPE have suffered double-digit setbacks in a week. The latest of these retreats by -23%. It is the third worst performance within the top 10 over the weekly period, as tokens like SPX and PENGU have worse numbers.

All this makes the meme sector one of the most eye-catching currently for the most risk-tolerant investors due to the possibilities of strong gains in case of a rebound.

Are meme coins preparing for a rebound or will the decline continue?

Considering the current state of global markets, it does not seem that meme coins can experience an increase in the short term. However, a possible improvement in the international context could calm markets and trigger a return of capital from gold to risk assets.

The partial return of liquidity would manifest with a visible improvement in prices, especially among the most volatile assets. In any case, the green numbers for meme coins so far in 2026 remain, although with an increasingly narrow margin. According to MarketVector, the meme coin index so far this year shows double-digit gains.

However, this chart, which now shows a YTD of +11.51%, displayed a +26% a few days ago. This highlights the mood among risk-loving portfolios. For now, the expected short-term performance of meme coins remains uncertain.

Meanwhile, it should be noted that among these tokens, some challenge the downward trend with particular strength. For example, PIPPIN cuts weekly losses with a performance of +18% in 24 hours. However, such cases of positive returns in the sector are now rare.

The coming days will be key, especially considering that at the end of the month, a monetary policy decision in the U.S. will be made. What the Federal Reserve decides regarding interest rates could have significant effects on cryptocurrencies in general.