A well-regarded cryptocurrency analyst, known for pinpointing market bottoms in 2022, has issued a stark warning about the future of meme coins. His alarming statements have caught the attention of investors and traders alike, urging them to reconsider their portfolios.
What Are the Analyst’s Concerns?
On social media platform X, the analyst, DonAlt, conveyed his belief that meme coins could face sudden collapses, or what he termed “giga rug pulls.” He advised those holding numerous iterations of dog or cat-themed coins to be cautious, hinting at an impending disaster.
Specifically, DonAlt pointed out Pepe (PEPE) as a coin at risk. According to him, if PEPE fails to hold the $0.00000998 support level, it may see a significant decline. Despite a recent 0.5% price increase, the analyst remains bearish on its prospects.
Why Is the Analyst Pessimistic?
DonAlt’s skepticism extends to other meme coins such as dogwifhat (WIF). He predicts a drop to the $2.23 range if it fails to establish $3.15 as support. This sentiment is reinforced by WIF’s recent 1.24% price fall.
The analyst has outlined several reasons for his bearish stance on meme coins:
Reasons to Reconsider Meme Coins
- Excessive proliferation of meme coins, with thousands released daily.
- Belief in the GME-meme rotation narrative, which he considers irrational.
- Unfavorable chart patterns.
- Overall bullish sentiment, which he views as a warning sign.
These points provide a strong basis for investors to rethink their meme coin investments, especially in the face of uncertain market conditions and potential losses.
In summary, the analyst’s warnings should prompt a careful reassessment of meme coin holdings. With specific predictions about coins like PEPE and WIF, investors are advised to stay vigilant and consider potential risks.
