Top Analyst Issues Bearish Warning on Memecoin Pepe (PEPE) and Predicts Significant Correction
An analyst with a substantial following on social media has shared a bearish outlook on the popular memecoin Pepe (PEPE). According to DonAlt, a pseudonymous analyst, PEPE recently experienced a false breakout to new all-time highs before descending below a critical price level. This development is seen as a bearish signal in technical analysis, indicating that sellers are dominating demand in the market.
- DonAlt notes that PEPE dropped below its previous highs, signaling a potential false breakout.
- If PEPE fails to reclaim the lost ground, the chart is likely to remain bearish.
- However, a successful recovery could lead to a bullish trend in the future.
Price Levels and Market Analysis
Based on DonAlt’s analysis, PEPE is currently hovering around $0.0000090, with the next support level at $0.0000065. Similarly, another memecoin, dogwifhat (WIF), is facing bearish pressure until it manages to surpass a crucial price point. WIF is currently trading at $2.68, showing signs of weakness in the market.
Predictions for Memecoin Market
DonAlt anticipates a significant devaluation in the memecoin sector based on historical market cycles. He foresees a potential 80%+ correction in meme coins, including popular ones, followed by the emergence of new memes that will attract investor interest. This cyclical pattern is common in the cryptocurrency market, with memes experiencing drastic price fluctuations over time.
- DonAlt emphasizes the cyclical nature of meme coin movements and predicts a future downturn in their value.
- He suggests that even established memecoins could face a significant correction in the coming cycles.
- New meme coins are expected to enter the market, creating opportunities for fresh communities and price surges.
Hot Take: Brace for Impact as Memecoin Market Faces Potential Correction
The memecoin market is currently under scrutiny as DonAlt warns of an impending correction that could impact popular coins like Pepe (PEPE) and others. Investors are advised to closely monitor the market trends and be prepared for potential price fluctuations in meme coins.
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