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.
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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