Dogecoin (DOGE) and Shiba Inu (SHIB) have fallen 18% over the past month, while Pepe (PEPE) has surged 33%.
This highlights a growing divide in the meme coin market as traders debate whether the sector can recover.
Kook Capital LLC warned that meme coins are "fully over" in their current form, citing collapsing trading demand and an endless wave of new token launches. The four structural problems he highlighted:
- Shrinking demand: Trading volume is collapsing as token launches surge.
- Unlimited supply: One-click tools enable mass token creation and fake volume.
- Market manipulation: Aged wallets and automated tools help evade detection.
- Broken incentives: Launching tokens is more profitable than buying them.
The firm warned that supply is approaching infinity while demand nears zero.
While meme coins may return in a different form, the next major crypto wealth-creation trend to emerge elsewhere.
Highlighting the meme coin stalwarts, Trader Dami-Defi favors Dogecoin over Shiba Inu, citing stronger liquidity, payment utility and institutional access through three U.S. spot ETFs.
He sees DOGE as the more durable meme coin and SHIB as a higher-risk recovery bet.
Can Pepe Sustain Its 33% Rally?
Pepe has gained nearly 15% over seven days, extending its monthly rally to 33% despite weakness across major meme coins.
Trader Davie Satoshi warned that Pepe's weekly Stochastic RSI is approaching overbought territory, suggesting momentum could cool despite its relative strength.
Meanwhile, trader Nebraskangooner identified a key weekly resistance level that Pepe must reclaim to confirm a longer-term bullish reversal.
He noted that PEPE is approaching a potential trend reversal rather than simply staging another short-lived rebound.
