Dogecoin’s Troubles Indicate Peril for Memecoins, According to Popular Analyst
A prominent cryptocurrency analyst has raised concerns about the future of meme coins, specifically highlighting Dogecoin (DOGE).
Nicholas Merten, the popular host of DataDash, recently suggested that the lack of significant movement in Dogecoin during the recent surge of meme tokens could indicate potential trouble for meme coins as a whole.
Merten emphasizes that the failure of Dogecoin to maintain its modest gains from the previous month might suggest that the meme coin trend is not genuine. He questions the reliability of other meme coins, such as Pepe, which experienced notable success during this period.
Merten asserts that this trend is simply artificial and lacks substance, with individuals artificially inflating its value through initial liquidity.
Additionally, Merten advises investors to focus on trading altcoins exclusively during bullish market conditions. He points out that historically, altcoins tend to lose value compared to Bitcoin (BTC) and the US dollar, making them mostly unfavorable investments.
Merten draws attention to the period when altcoin markets peaked in April and May 2021, which marked a turning point for Dogecoin. Referencing past cycles, he asserts that historical analysis can provide valuable insights into the market’s behavior.
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This demonstrates that altcoins are usually viable options for trading only during rare bull markets and altcoin cycles. In most cases, altcoins experience declines not just against Bitcoin but also against the US dollar.
As of the time of writing, Dogecoin is being traded at $0.070, indicating a 3.2% decrease over the past week.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
