According to some crypto analysts, the recent surge of popular meme coin trends will be coming to an end soon, especially for the PEPE coin.
Memes have experienced a significant surge in value this year (2024) compared to other cryptocurrency market segments. Meme stocks like GameStop Corp (NYSE: GME) and AMC have recently triggered the rise of the meme coin, which has persisted even though the rally in the Bitcoin and altcoin markets has stalled since April. However, some market analysts believe the meme coin party may end soon. This is particularly true for meme coins that have produced multiple returns quickly, such as Pepe (PEPE).
According to a cryptocurrency analyst who experienced the 2023 cryptocurrency boom, Meme coin PEPE is expected to decline.
Speaking to his 553,800 followers on social media site X, pseudo-anonymous analyst DonAlt speculates that PEPE may be seeing a substantial downturn. According to him, PEPE recently made a fake breakthrough to reach new all-time highs, dropping below the $0.000009959 range high.
Such a false breakout in technical analysis usually indicates a negative trend, meaning that sellers are outpacing demand. The market analyst additionally stated:
“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.”
PEPE has a market value of $3.94 billion and is currently trading 2.14% higher at $0.000009359 as of the time of publication. It currently ranks third in terms of meme currency, after Shiba Inu (SHIB) and Dogecoin (DOGE).
Dogwifhat (WIF), a meme coin, flashes a negative signal
DonAlt is currently negative on Dogwifhat (WIF), another meme coin. DonAlt advises that the altcoin should stay bearish unless the meme coin WIF regains a critical price level.
“We’re Going low again on the range. We’re continuing to give forth strong negative indicators. It would be better if it hits $2.77 or less than $2.” WIF is trading 6.54% higher at $2.71 as of publication, which is extremely close to its breakthrough resistance levels.
Using data from past market cycles, DonAlt evaluates the larger meme coin environment and projects notable altcoin devaluations.
“The popular memes we trade today will trade 80%+ lower if I’m correct. After that, new memes will emerge and create rapidly growing groups. And in a few years, we will be having the same conversations. Why am I stating that? Because this particular situation has already occurred 100 times in the history of cryptocurrency. It will be soon if the #1 meme isn’t there now. After that, you’ll receive a 90% nuke on every single one of them, even the most “blue chip” memes (lol). Every cycle, it is repeated,” the expert said.