Despite the Surge, the Aggregated Market Cap of Meme Coins is Still Sitting Below the $50 Billion Level

During a recent speech, Elon Musk, an influential figure in the Dogecoin community as he has shown support for the project multiple times in the past, claimed that it was a coincidence and that there are no plans for the government to use DOGE in any way.

Despite the massive surge in the past hours, the aggregated market cap of meme coins is still sitting below the $50 billion level as investors have turned their backs on this category temporarily.

At the moment, the Fear and Greed Index stands at 24, indicating extreme fear among crypto traders.

However, it seems that the selling pressure has started to decrease, which could be a sign that the downtrend that started in December has enough strength to keep going four months later.

During a recent speech, Elon Musk, an influential figure in the Dogecoin community as he has shown support for the project multiple times in the past, claimed that it was a coincidence and that there are no plans for the government to use DOGE in any way.

Dogecoin: What’s Next?

Even though this would have been bearish for DOGE in most scenarios, it appears that buyers are ignoring these comments and have kept piling on the meme coin.

This has helped the cryptocurrency to recover some of its recent losses, but it is still trading at a lower level compared to the beginning of the year.

Dogecoin’s former trend line resistance has now been acting as support for the latest decline, emphasizing its relevance to market participants.

After dropping for four days in a row, DOGE has now bounced off this line but momentum seems to be still favoring bears as the Relative Strength Index (RSI) has retested the signal line from below.