A widely followed cryptocurrency trader warns that several major memecoins are printing bearish price patterns.
The trader is pseudonymously known as Altcoin Sherpa tells his 239,100 followers on social media platform X as memecoins like Pepe (PEPE), Bonk (BONK) and dogwifehat (WIF) print lower highs and lower lows on their price charts.
He suggests that the top memecoins may still witness rallies over time, but they may not outperform the market like they did at the beginning of last year.
“Big-cap memes are not looking good overall, but this is not 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 chart) but that is probably more due to The SOL/ETH chart (ETH has been outperforming SOL for the last bit).
Still worried about how strong these will be later on, but keep an eye on them. And by strong I mean lead like they did in the first quarter of 2024. I know these will have their run/rotation just like everything else, but will they be the market leader again? Let’s see.”
PEPE is trading at $0.0000169 at the time of writing, down 3.5% in the last 24 hours.
BONK is trading at $0.0000264 at the time of writing, down 2.5% on the day.
WIF is trading at $1.49, down 2.9% in the last 24 hours.
Next up, the merchant suggests the Dogecoin (DOGE) may break out when it drops 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 it will make a decent move as alts go but not sure if it will lead like we saw in early November. Probably a good buy, but would be patient.”
DOGE is trading at $0.33 at the time of writing, up 1.1% in the last 24 hours.
Finally, the trader says popcat (POPCAT), Solana (SOLAR)-based memecoin, may be close to cutting a local market bottom after a steep correction.
“POPCAT is down 75% and in a high volume node region this is not the place to short. I’m actually thinking about buying it. Still think cats catch up with dogs later.”
POPCAT is trading at $0.55 at the time of writing, down 2.6% in the last 24 hours.
