Memecoins
A professional cryptocurrency analyst predicts a significant drop for Memecoin PEPE and other Altcoins
A prominent analyst, accurate in predicting the 2023 Crypto Breakout, DonAlt, has made a bearish prediction on the Pepe memecoin and other altcoins. In a more recent analysis from social media platform
The false breakout signals a bearish trend for PEPE
DonAlt, which has 553,800 followers on X, indicated that PEPE made a false breakout above its previous high of $0.000009959 before sellers pushed the price lower again. A false breakout, according to technical analysis, is seen as a bearish indication that sellers are flooding the market.
“I have fallen below previous highs. For now, it looks like a false breakout. Until it recovers, it is a bearish chart. If recovered, it would be quite bullish, but only then,” DonAlt said.
DonAlt chart shows that the next key support for PEPE is around $0.0000065. At the time of writing, PEPE is trading at $0.0000090, indicating that it may fall if the previous highs are not regained.
Bearish outlook for Dogwifhat and the broader Memecoin market
DonAlt also shared his bearish outlook on another memecoin, Dogwifhat, and indicated that WIF looks really weak unless it manages to regain the key price level. “Almost back to low level. It still looks very bad. It would be better above $2.77 or below $2,” he commented. Currently, WIF is trading at $2.68, with prices barely holding on to their low range.
DonAlt believes that the entire memecoin market is ripe for large devaluations, considering patterns from previous market cycles. He predicts that many top memecoins could lose more than 80% of their value.
“If I’m right, the popular memes we trade today will trade more than 80% less. So new memes will come out and build new communities that will develop. And we will have the same discussions in a couple of years,” she explained.
DonAlt made this prediction based on previous trends in the cryptocurrency market, where memecoins often rise sharply, then fall sharply. “Why do I say this? Because we have already faced this exact scenario hundreds of times in the history of cryptocurrencies. If the top meme isn’t there, sooner or later it will be. And then you’ll get a 90% F-bomb on everyone, even the most “blue chip” (lol) memes that exist. It repeats every cycle,” DonAlt added.