Why Memecoin Rallies Rarely Hold Their Gains

[madmax]

Memecoins started the year strongly, with total market capitalization rising from $38 billion in late December to nearly $48 billion by early January. But that momentum faded quickly, reinforcing a familiar pattern of sharp rallies followed by rapid cooling as traders rotate capital between tokens.

Kadan Stadelmann says this behavior is baked into the sector. With weak fundamentals and speculation driving most price action, memecoins tend to revert rather than stabilize. Gains in one token are often offset by losses in others, keeping the overall market volatile and fragile.

[cryptobro]

high volume but no real money coming in is such a red flag tbh