A widely followed cryptocurrency trader warns that several large-cap memecoins are printing bearish price patterns.
The trader pseudonym known as Altcoin Sherpa tells His 239,100 followers on the social media platform
He suggests that the top memecoins could still see rallies over time, but they may not outperform the market as they did early last year.
“Big cap memes generally don’t look great, but this isn’t the place to go short in my opinion. PEPE [on the daily chart] has held up much better than BONK and WIF [on the three-day charts] but that’s probably more due to the SOL/ETH chart (ETH has outperformed SOL in the last stretch).
Still worried about how strong these will be later, but eyes are on them. And by strong I mean ahead like they did in the first quarter of 2024. I know these will have their run/rotation like everything else, but will they become the market leaders again? Let’s see.”
PEPE is trading at $0.0000169 at the time of writing, down 3.5% in the last 24 hours.
BONK is trading at $0.0000264 at the time of writing, down 2.5% on the day.
WIF is trading at $1.49, down 2.9% in the last 24 hours.
Then the trader suggests that Dogecoin (DOGE) could break out as it chops around the $0.33 Fibonacci retracement level. Traders use the Fibonacci retracement tool to discover potential entry and exit points for an asset based on the Fibonacci ratio.
“DOGE: Not too many thoughts on this, think it will make quite a move as the alts go, but I’m not sure it will take a leading role as we saw in early November. Probably a great purchase, but I’d have to be patient.’
DOGE is trading at $0.33 at the time of writing, up 1.1% in the last 24 hours.
Finally, the trader say Popcat (POPCAT), the Solana (SOL)-based memecoin, could be close to bottoming in the local market after a steep correction.
“POPCAT is down 75% and in a high volume hub region this is not the place to be shorting. I’m actually thinking about buying it. Still think cats will catch up with dogs later.
POPCAT is trading at $0.55 at the time of writing, down 2.6% in the last 24 hours.
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Generated image: Midjourney
