Indicator Overview

The Momentum Coalescence indicator evaluates the equal-weighted memecoin index’s price momentum by combining: Fast Rate of Change (ROC), Slow Rate of Change (ROC), Volume delta, and Volatility Directional Bias (VDB).

This index compiles the following top 10 memecoins by market capitalization (as of December 2025):

1. Dogecoin (DOGE)

2. Shiba Inu (SHIB)

3. Pepe (PEPE)

4. Official Trump (TRUMP)

5. Bonk (BONK)

6. Pudgy Penguins (PENGU)

7. FLOKI (FLOKI)

8. Fartcoin (FARTCOIN)

9. dogwifhat (WIF)

10. Book of Meme (BOME)

The index price is calculated as the average of these 10 memecoins’ prices (equal weighting, no rebalancing specified here).

It creates a normalised score to reflect the convergence of bullish or bearish forces in the memecoin sector. This indicator is crucial for understanding shifts in sector-wide market sentiment, as it captures both price and volume dynamics, helping investors identify potential trend reversals or continuations amid the intense hype and volatility of memecoins.

How To Use

Historically, positive coalescence scores above 0.5 often signal strong bullish momentum, coinciding with rallies in the memecoin index. Negative scores below -0.5 may indicate bearish pressure, often seen during corrections. You can use extreme readings to anticipate reversals: overbought conditions (high positive scores) suggest caution or profit-taking across the basket, while oversold levels (low negative scores) may present buying opportunities. The histogram or line, with a neutral line at zero, helps visualise momentum shifts in this highly sentiment-driven asset class.