An analyst who rode the 2023 crypto breakout thinks that memecoin Pepe (PEPE) is headed to much lower levels.
Pseudonymous analyst DonAlt tells his 553,800 followers on the social media platform X that PEPE appears to have made a false breakout to new all-time highs before sellers pushed the price below its range high of $0.000009959.
In technical analysis, a false breakout is often seen as a bearish sign, suggesting that sellers are overwhelming demand.
Says DonAlt,
“Fell below the previous highs. For now, that looks like a false breakout. As long as that’s not reclaimed, that’s a bearish chart. If reclaimed, that’d be quite bullish but only then.”
Based on the trader’s chart, the next support level for PEPE appears to be at $0.0000065. At time of writing, PEPE is worth $0.0000090.
As for fellow memecoin dogwifhat (WIF), DonAlt says the altcoin is bearish unless it recovers a key price level.
“Almost back to range low. Looks very bad still. Would look better above $2.77 or below $2.”
At time of writing, WIF is trading at $2.68.
Looking at the broader memecoin market, DonAlt believes that coins in the altcoin sector will witness massive devaluations based on data from previous cycles.
“If I’m right, the popular memes we trade today will trade 80%+ lower. Then you’ll have new memes come up that build new communities that run up. And we’ll have the same discussions in a couple of years…
Why am I saying that? Because we’ve gone through this exact scenario a hundred times in crypto history already. If the meme top isn’t in, it will be eventually. And then you’ll get a 90% nuke on all of them, even the most ‘blue chip’ memes (lol) that exist. It repeats every cycle.”
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Generated Image: Midjourney
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