Published on april 26, 2024, 1:12 am
Image source: Fox News
```json [ "TLDR: Retail investors are turning to memecoins as they view them as fairer opportunities compared to VC-backed coins with high valuations. Dogecoin's price is showing a pattern that could lead to significant movements, potentially reaching new peaks. Analysts caution about the speculative nature of memecoins but some are expected to maintain their value. Recent gains in memecoins like PEPE, SHIB, WIF, and FLOKI have occurred, but experts warn this may not mark a sustained altseason for memecoins. Memecoin market sees fluctuations, with trading volume down by 17% in 24 hours and total market capitalization decreasing by 5.8%. This article does not provide investment advice." ] ```
The altcoin market is witnessing a shift as retail investors turn their attention towards memecoins, viewing them as potentially fairer opportunities compared to VC-backed coins with high fully diluted valuations. Despite the top memecoins being currently far from their previous peaks, there are indications that they could be gearing up for significant movements.
Dogecoin (DOGE), a prominent memecoin, has experienced a recent dip in price. However, historical data reveals an interesting pattern suggesting that it might embark on a rally towards new all-time highs around seven months after a Bitcoin halving event. While DOGE’s price has dropped by almost 8% daily and over 18% in the last month, its price action mirrors that of the previous cycle, hinting at the potential for reaching new peaks.
In the last crypto bull market, Dogecoin began its upsurge in May 2020, precisely seven months after the 2020 Bitcoin halving. Achieving its peak of $0.73 on May 8, 2021, a year after Bitcoin’s halving event, DOGE is currently trading at a substantial discount from its previous all-time high.
Analysts caution that applying technical analysis to memecoins can be challenging due to their speculative nature. These “manic market” assets are primarily driven by greed and carry significant risks while lacking substantial value fundamentals. Despite this, some memecoins are expected to uphold their valuation going forward.
With numerous cryptocurrencies debuting with high FDVs and significant VC investments in recent years, concerns have been raised about the long-term implications of VC influence on digital assets. As such, retail investors might perceive memecoins without VC backing as more equitable investment prospects.
Recent movements in memecoins like Pepe (PEPE), Shiba Inu (SHIB), Dogwifhat (WIF), and Floki (FLOKI) have garnered double-digit gains within the past week. However, experts warn that this surge may not signify the beginning of a sustained altseason for memecoins.
The daily trading volume of memecoins has dipped by over 17% in the last 24 hours to $6.58 billion, with total market capitalization down by 5.8% to $52.8 billion according to CoinMarketCap data.
It’s important to note that this article does not offer investment advice and readers are encouraged to conduct thorough research before making any financial decisions involving cryptocurrencies or other investments.
Original article posted by Fox News
