PENGU and TRUMP Memecoins Near New All-Time Lows (ATL) as Memecoin Sector Suffers Downturn

The memecoin sector is facing a severe downturn right now, with PENGU and TRUMP both nearing new all-time lows (ATL). Once high-flying tokens

Memecoins, once the darlings of the retail crowd, are now facing the brunt of a market downturn, with PENGU and TRUMP both nearing new all-time lows (ATL).

Both tokens, which saw their value skyrocket in 2023, have now shed significant ground over the past few weeks, reflecting a broader decline in memecoin assets.

The slump in memecoin prices has coincided with fading retail enthusiasm and a cooling off in speculative trading across the sector. While the first half of 2023 saw a surge in memecoin hype, interest has waned in recent weeks, leading to lower trading volumes and liquidity.

Moreover, the broader cryptocurrency market has also seen a downturn, with total market capitalization dropping from a peak of over $1.4 trillion to around $1.17 trillion at press time. This market-wide decline has impacted memecoins بشكل غير متناسب.

PENGU drops below key support levels

After dropping from a local high of $0.04 in February, memecoin PENGU continued its January freefall, trading at $0.01 at press time – a staggering 75% decline in just under a month.

The token attempted a short-lived rebound at $0.025, but failed to maintain any momentum, leading to a series of lower lows.

A look at PENGU’s candlestick chart underlined sustained selling pressure, with only brief periods of relief buying.

If PENGU breaks below its psychological support of $0.01, it could open the door to further downside, making a new ATL more likely.

TRUMP on a steady decline – Nearing critical levels

TRUMP mirrored PENGU’s decline, dropping from a January peak of $80 to just $18, representing a 77.5% loss in value.

Unlike PENGU, TRUMP’s decline has been more gradual, but no less severe. Its price action hinted at an absence of strong support, with the token trading in a tight consolidation range between $18 and $20.

If bearish momentum persists, TRUMP could soon retest its previous ATL, making it one of the worst-performing memecoins in recent weeks.

Memecoin sector at large is suffering

The struggles of PENGU and TRUMP are not isolated cases though, as the entire memecoin sector is experiencing a downturn right now.

For example, data from CoinMarketCap revealed that the total market cap of memecoins has fallen sharply lately, reflecting a broader decline in speculative interest.

The most notable trends include a market-wide drawdown, with figures for the same falling from over $80 billion to $67.87 billion – a 15% decline over the last few weeks.

Meme sector dominance has also been affected, with the dog-themed and Elon Musk-inspired meme categories, which once led the market, seeing significant reductions in capital inflows.

Finally, retail exhaustion is evident too as social sentiment and on-chain activity hinted at waning interest in memecoins, contributing to lower liquidity and prolonged downtrends.

What’s next for PENGU, TRUMP, and the market?

While the short-term outlook remains bearish, memecoins have historically seen explosive comebacks following extended drawdowns.

For PENGU and TRUMP to regain momentum, key catalysts will be required, such as renewed social media hype, whale accumulation, or broader market recovery.

For now, traders should watch for potential reversal signals, including a spike in trading volume, increased whale transactions, or signs of stabilization in the broader memecoin sector. Until then, the path of least resistance remains south, with new all-time lows looking increasingly likely.