Indicator Overview

The Volatility Fractals indicator evaluates the equal-weighted memecoin index’s volatility by analysing price ranges defined by fractal pivot points, comparing them to current bar fluctuations. 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).

Normalised and smoothed over a 5-period EMA, it produces an intensity curve that reflects clustering volatility in the memecoin sector. This indicator is crucial for identifying market regimes, as high volatility often signals impending price breakouts or reversals driven by hype or fear, while low volatility indicates calm, accumulation-driven phases. It provides a dynamic view of the memecoin sector’s price structure, helping anticipate shifts in market activity amid extreme sentiment swings.

How To Use

The indicator’s intensity curve rises above 20 (purple line) during high-volatility periods, often preceding significant price movements or trend changes across the memecoin basket. Values near 0 (white line) indicate low volatility, typically associated with consolidation or range-bound markets. Traders can use sharp increases in intensity to position for potential breakouts, while low-intensity periods may signal opportunities to accumulate these top memecoins. The purple gradient area visualises volatility strength, with darker hues indicating more intense activity. Investors can exercise caution during high-intensity spikes and build positions in low-intensity zones to capitalise on the memecoin sector’s highly cyclical and explosive volatility patterns.