A widely followed cryptocurrency trader is warning that several large-cap memecoins are printing bearish price patterns.
The trader pseudonymously known as Altcoin Sherpa tells his 239,100 followers on the social media platform X that memecoins like Pepe (PEPE), Bonk (BONK) and dogwifhat (WIF) are printing lower highs and lower lows on their price charts.
[adinserter block="1"]He suggests that top memecoins may still witness rallies over time, but they may not outperform the market like they did early last year.
“Big-cap memes don’t look great overall, but this isn’t the place to be shorting 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 the last bit).
Still apprehensive about how strong these will be later, but eyes on them. And by strong I mean lead like they did in Q1 2024. I know these are going to have their run/rotation just like anything else, but will they be the market leaders again? Let’s see.”
PEPE is trading for $0.0000169 at time of writing, down 3.5% in the last 24 hours.
BONK is trading for $0.0000264 at time of writing, down 2.5% on the day.
WIF is trading for $1.49, down 2.9% in the last 24 hours.
Next up, the trader suggests that Dogecoin (DOGE) may break out as it chops around the $0.33 Fibonacci retracement level. Traders use the Fibonacci retracement tool to spot potential entry and exit points for an asset based on the Fibonacci ratio.
“DOGE: not too many thoughts on this, think that it’s going to make a decent-sized move when alts go but not sure if it’s going to lead like we saw in early November. Probably a fine buy, but would be patient.”
DOGE is trading for $0.33 at time of writing, up 1.1% in the last 24 hours.
Lastly, the trader says Popcat (POPCAT), the Solana (SOL)-based memecoin, may be close to carving a local market bottom after a steep correction.
“POPCAT has fallen 75% and in a high volume node region, this isn’t the place to be shorting. I am actually thinking about buying it. Still think cats do some catch-up to dogs later.”
POPCAT is trading for $0.55 at time of writing, down 2.6% in the last 24 hours.
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