Coinspeaker Popular Meme Coins Can See Up to 80% Correction, Analyst Predicts
So far this year in 2024, meme coins have enjoyed a strong run-up in comparison to other crypto market sectors. Even when the Bitcoin and altcoin market rally paused since April, the meme coin rally has continued backed by the recent catalyst provided by meme stocks like GameStop Corp (NYSE: GME) and AMC. However, as per some of the market analysts, the meme coin party could be ending very soon. This is especially true for meme coins like Pepe (PEPE) which have given multi-fold returns in a very short period of time.
A crypto analyst who navigated the 2023 cryptocurrency surge anticipates a downturn for meme coin PEPE.
Pseudonymous analyst DonAlt, addressing his 553,800 followers on the social media platform X, suggests that PEPE might be poised for a significant decline. He observes that PEPE recently experienced a false breakout to new all-time highs before descending below its range high of $0.000009959.
In technical analysis, such a false breakout typically indicates a bearish trend, indicating that sellers are surpassing demand. The market analyst added:
“Fell below the previous highs. For now, that looks like a false breakout. As long as that’s not reclaimed, that’s a bearish chart. If reclaimed, that’d be quite bullish but only then.”
As of press time, PEPE is trading 2.14% up at a price of $0.000009359 with a market cap of $3.94 billion. It is currently the third-largest meme coin after Dogecoin (DOGE) and Shiba Inu (SHIB).
Meme Coin Dogwifhat (WIF) Flashes Bearish Signal
Another meme coin that DonAlt is currently bearish on is Dogwifhat (WIF). Regarding the meme coin WIF, DonAlt suggests the altcoin remains bearish unless it manages to reclaim a crucial price level.
“Approaching the range low once more. Still exhibiting strong bearish signals. Improvement would be seen if it surpasses $2.77 or falls below $2”. As of press time, WIF is trading 6.54% up at a price of $2.71 i.e. very much close to its breakout resistance levels.
Assessing the wider meme coin landscape, DonAlt anticipates significant devaluations across the altcoin sector, drawing insights from previous market cycles.
“If I’m right, the popular memes we trade today will trade 80%+ lower. Then you’ll have new memes come up that build new communities that run up. And we’ll have the same discussions in a couple of years. Why am I saying that? Because we’ve gone through this exact scenario a hundred times in crypto history already. If the meme top isn’t in, it will be eventually. And then you’ll get a 90% nuke on all of them, even the most ‘blue chip’ memes (lol) that exist. It repeats every cycle,” the analyst noted.
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Popular Meme Coins Can See Up to 80% Correction, Analyst Predicts
