In early January, meme coins experienced a strong rebound, with the total market capitalization soaring over $11 billion within a week, reversing the previously predicted sluggish outlook for 2025. PEPE's price surged over 60%, reaching a market cap of $2.7 billion and challenging key resistance levels; Dogecoin, driven by ETF fund inflows and increased market acceptance, broke a months-long downward trend. Liquidity recovery and short-squeeze liquidations fueled this strong rebound, also changing market sentiment and raising questions about whether the meme coin cycle can continue into 2026.