A prominent trader, known for accurately predicting cryptocurrency trends, has recently taken a pessimistic stance on memecoins. The trader, who goes by the pseudonym DonAlt, expressed his concerns to his 550,400 followers on the social media platform X. According to him, memecoin projects could face sudden collapse.
DonAlt stated, “I firmly believe that the era of memes is coming to an end. While the rest of the market may survive, I anticipate a massive rug pull for memecoins. If your portfolio is heavily invested in the 10th iteration of a dog or a cat, good luck.”
Taking a closer look at specific memecoins, DonAlt warned that Pepe (PEPE) might experience a significant decline if it fails to maintain support at the $0.00000998 level on the daily chart. He commented, “PEPE has seen a decent breakout and is technically bullish as long as it holds. However, if it fails and falls back into the range, I will be shorting it with the aim of reaching range lows. While I prefer WIF, I might hedge my bets.”
At the time of writing, Pepe is trading at $0.00001004, reflecting a 4.5% decrease in the last 24 hours.
DonAlt also expressed concerns about memecoin dogwifhat (WIF), suggesting that it could decline to around $2.23, which is the range low, if it fails to establish support at the range high of $3.15. He stated, “I am actively looking to short the range high for WIF and target a position below the range low. However, my assumption will be proven wrong if the range is decisively broken.”
WIF is currently trading at $2.83, indicating a 7.6% decrease in the last 24 hours.
Furthermore, DonAlt outlined several reasons for his bearish stance on memecoins. He highlighted the abundance of memes in existence, with thousands being created daily. Additionally, he criticized the narrative surrounding the “GME-meme rotation” as irrational. Furthermore, he pointed out that charts for memecoins do not look promising overall, and sentiment in the market is overwhelmingly bullish.
In conclusion, DonAlt’s bearish outlook on memecoins raises concerns about the future of these projects. Investors should exercise caution and conduct thorough research before making any high-risk investments in cryptocurrencies or digital assets.
