Indicator Overview

The Top 10 Memecoin Index ATH Drawdown indicator measures the percentage decline of a market-cap-weighted index of the top 10 memecoins (DOGE, SHIB, PEPE, TRUMP, BONK, PENGU, FLOKI, FARTCOIN, WIF, BOME) from its prevailing all-time high, switchable between USD and BTC denomination. The drawdown is displayed as a continuous gradient from deep green (near 0%, fresh highs) through yellow and orange to blood-red (extreme drawdowns beyond -80%).

How To Use

Deep red zones below -70% have historically marked maximum pain and capitulation across memecoins, creating some of the strongest generational buying opportunities for the sector. Persistent green near 0% signals extreme overextension and parabolic tops, ideal for profit-taking, hedging, or short exposure before violent mean reversion. Rapid upward breaks from red territory confirm new memecoin bull cycles and justify aggressive re-entries, while failure to reclaim prior highs after prolonged orange/red drawdowns warns of structural weakness.

The zero line acts as the ultimate regime divider: sustained trading above confirms bullish leadership in memecoins, while repeated failures below increasingly validates bearish control. Traders use the deepest red extremes as high-conviction accumulation signals, green persistence as distribution warnings, and the speed of recovery from lows as confirmation of new cycle strength, transforming this drawdown metric into one of the most powerful cycle-timing and risk-management tools available for the memecoin market as a whole.