Bitcoin is flirting with a further descent down to lower price levels, and most altcoins are still beaten down. That said, when the market bottoms, getting those entries early will be key. Memecoins will potentially be the canary in the coal mine for the recovery.
Sell green and buy red
All is still mostly blanketed in red across the crypto space. Bitcoin is languishing at $57,000 and looks as though it could take another dip. The altcoins are as usual doing a lot worse, and those who are holding them must be suffering.
Be that as it may, the best traders know that you buy the red and sell the green. Of course, timing the bottom is almost impossible, but starting to ladder into some positions could be what some traders are starting to do.
Memecoins – a polemic discussion
Memecoins are still an extremely polemic topic in the cryptocurrency space. One side of the argument is that they are pure gambling vehicles based on nothing but thin air, and are designed to make money for the issuer at the expense of a huge retail crowd that is out to make money quickly.
On the other side of the argument are those who realise that memecoins have the most volatility, and are therefore offering the biggest returns to whoever can trade them the most successfully.
One more thing that needs to be said is that there are way too many memecoins in the market now. Probably just as there were/are for altcoins, NFT JPEGs, and the like. This is a money grab and won’t end well for many who invest in them.
So with all the memecoin baggage out of the way, and with the realisation that buying memecoins is a spin of the wheel at the roulette table, the decision needs to be made if now, or the near future is a good time to buy them.
Dog Wif Hat (WIF) already out of the blocks
Source: Coingecko/TradingView
As already mentioned, buying the red is the way to go. But if that is the case, then the very popular Dog Wif Hat (WIF) could already be out of the starting blocks. The short term 4-hour time frame shows that the $WIF price is inside a triangle and is currently butting up against the resistance at $2.75. Should the price fall back to the bottom of the triangle, or even all the way back to the main support at $1.94, these could be good entry points.
$PEPE breaks out
Source: Coingecko/TradingView
$PEPE is one of the other favourites among the retail horde that buys memecoins, and as can be noted in the very short hourly time frame above, the price has just broken out and has confirmed the breakout, albeit only on the hourly. A 4-hour confirmation, or higher would be a much better signal that the price is going to hold this breakout.
$BONK leads the memecoins with 10% gains
Source: Coingecko/TradingView
And then we go to $BONK, the premier memecoin on Solana. Once again, a breakout has occurred, and another hourly candle has opened above the trend line. Having already put on 10% in gains, the price is now at resistance, so it will be interesting to see if this can be broken, potentially inspiring a move up to the main $0.000029 resistance.
So, a short delve into the prices of three of the main memecoins shows that there is the possibility that they have already started their next major moves to the upside.
Memecoins among first to react
Be that as it may, it is still too early to know whether this is just a flash rally, or if it is indeed the beginning of a major upside move. $BTC has just risen to retest the $59,000 resistance again, so it now remains to be seen if this was just a retest, or the start of something bigger.
Even if this current rally does come to nothing, and $BTC corrects down to $51,000, dragging the memecoins down with it, it can be seen just how quickly the memecoins react to the slightest bit of positivity in the market, and more importantly, how they are generally able to react first.
Trade wisely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
