- 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.”
Crypto Analyst DonAlt Predicts a Sharp Decline in Memecoin Values, Citing Market Saturation and Poor Chart Performance
Market Sentiment Shifts as Influential Trader Forecasts Memecoin Crash
DonAlt, a well-known figure in the cryptocurrency trading community, has recently expressed a starkly bearish outlook on memecoins, a subcategory of cryptocurrencies that started as internet jokes but later gained financial traction.
Specific Memecoins Under Threat
Highlighting specific tokens, DonAlt pointed out Pepe (PEPE) and dogwifhat (WIF) as particularly vulnerable. According to his analysis, PEPE, which is currently trading just above its critical support level, could see a significant drop if it breaks below $0.00000998. Similarly, WIF is at risk of falling below the $2.23 mark if it cannot maintain support at the recent high of $3.15.
Underlying Reasons for the Bearish Stance
DonAlt cites several reasons for his negative outlook on memecoins. The market is flooded with such tokens, with new ones being created daily. Additionally, he criticizes the investment rationale that aligns memecoins with popular meme stocks like GME, suggesting that the strategy lacks sound financial judgment. Technical analyses and market sentiment for these coins are also showing bearish signs, further supporting his position.
Conclusion
This shift in sentiment from a prominent crypto trader could signal a turning point for memecoins. Investors might need to reassess their positions in these assets, especially those heavily invested in the types that DonAlt warns about. As always, market participants should conduct their own research and consider multiple viewpoints before making investment decisions.
