- PENGU lost 75% of its value in a month, with TRUMP facing similar fortunes too
- Memecoin sector’s market cap declined by 15% over the last few weeks on the back of weak social sentiment and liquidity
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, both have shed significant value over the past few weeks, reflecting a broader decline in memecoin assets.
In fact, the slump has coincided with fading retail enthusiasm and a cooling off in speculative trading across the sector.
PENGU drops below key support levels
In February, PENGU has continued its January freefall, dropping from a local high of $0.04 to a press time price of $0.01 – A staggering 75% decline in just under a month.
While the token attempted a short-lived rebound at $0.025, it failed to maintain any momentum, leading to a series of lower lows.
Source: Coingecko
The 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.
TRUMP on a steady decline – Nearing critical levels
TRUMP has 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.
Source: CoinGecko
Its price action hinted 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.
Source: CoinMarketCap
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.
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.
Source: CoinGecko
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.
