Renowned for their speculative nature intertwined with swift price fluctuations, memecoins emerged as top performers within the cryptocurrency sphere in 2024. Nonetheless, recent market turbulence has chipped away at their initial remarkable gains, escalating worries of further downturns among investors.

The cryptocurrency landscape underwent a significant correction spanning from March 18 to March 19, witnessing an exodus of over $230 billion from the market in a single day. This abrupt transition from intense bullish tendencies to mild bearish sentiments cast a somber hue over the frenzy encircling memecoins, sparking uncertainties about the sustainability of their ascent amidst the present market backdrop. Technical cues are sounding caution alarms for two alternative coins, namely Pepe (PEPE) and Dogwifhat (WIF), cautioning investors to tread carefully in the forthcoming week due to their recent performance and inherent risks.

Pepe's PEPE underwent a notable surge exceeding 500% over the last month, only to witness a loss of momentum thereafter, as evidenced by the Relative Strength Index (RSI) plummeting to 55. Despite lofty valuations, a bearish trajectory hinting at possible downside vulnerabilities has surfaced on the daily chart. PEPE, devoid of any tangible utility beyond speculation, is confronting substantial support thresholds amidst a drastic devaluation. Likewise, Dogwifhat's WIF encountered a significant upsurge of approximately 600% in the preceding 30 days, luring individual investors to the Solana (SOL) Blockchain. Yet, there exists a proclivity among investors to cash out their profits presently, predisposing a potential liquidity shock and a substantial price nosedive. The critical support levels for WIF are presently under stringent examination, and a failure to sustain existing levels could culminate in an 86% downturn.

The allure of memecoins predominantly stems from their enticing speculative nature grounded in the anticipation of vending them to subsequent buyers at elevated prices. In essence, the magnetic attraction of memecoins hinges on the greater fool theory. This speculative conduct may result in rapid price escalations but also lays bare investors to substantial perils, particularly when the market sentiment undergoes a transformation.

Although additional backing or endorsements from celebrities might rekindle interest and propel price escalations in memecoins, investors ought to exercise prudence, particularly in the face of probable retractions. Steering clear of trading assets like PEPE and WIF during periods of amplified volatility could aid in cushioning against potential setbacks.