A trader known for making accurate crypto calls is suddenly turning bearish on memecoins.
Pseudonymous analyst DonAlt tells his 550,400 followers on the social media platform X that memecoin projects could suddenly collapse.
“I’m personally convinced it’s over for memes, rest of the market might get out of this ok but I’m expecting memes to giga rug (gigantic rug pull). Good luck if your portfolio is in the 10th iteration of a dog or a cat.”
Zeroing in on specific memecoins, the analyst warns that Pepe (PEPE) could plummet to a range low if it fails to hold as support the $0.00000998 level on the daily chart.
“PEPE: decent breakout, technically bullish as long as it holds. If it fails and breaks back in the range, I’ll be shorting it targeting range lows. Prefer WIF but might spread my bets.”
Pepe is trading for $0.00001004 at time of writing, down 4.5% in the last 24 hours.
The analyst also says memecoin dogwifhat (WIF) could plummet to around the range low of $2.23 if it fails to flip into support the range high of $3.15.
“WIF: actively looking to short the range high. Target somewhere below the range low. Wrong if the range is broken properly.”
WIF is trading for $2.83, down 7.6% in the last 24 hours.
The analyst also lists several of his reasons for being bearish on memecoins.
“Reasons for why I’m bearish memes:
- There are infinite memes already.
- Every day there are thousands more.
- Bunch of people bought into the GME-meme rotation narrative (which is beyond retarded in my opinion).
- Charts don’t look so good across the board.
- Sentiment is heavily skewed bull.”
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The post ‘It’s Over for Memecoins’: Trader Who Nailed 2022 Crypto Bottom Turns Bearish on dogwifhat and Pepe – Here’s Why appeared first on The Daily Hodl.
