One Meme Coin is Going to Zero, According to Popular Analyst
A widely followed trader who accurately called the November 2022 Bitcoin (BTC) bottom has expressed concerns about the potential collapse of a meme coin that has experienced significant gains.
The trader known as DonAlt believes that Pepe (PEPE), a meme coin rivaling Dogecoin (DOGE) and Shiba Inu (SHIB), is likely to eventually reach a value of zero.
Where does PEPE go next? pic.twitter.com/Gs137d95EN
— DonAlt (@CryptoDonAlt) May 11, 2023
DonAlt’s analysis, illustrated by a chart showing Pepe’s sharp rise followed by a sudden fall, suggests that the meme coin may become worthless within three to five years.
DonAlt also provides insights into Bitcoin’s future, suggesting that the leading cryptocurrency may continue to decline in the near term.
$BTC update:
Slow bleed has been very accurate.
Every bounce so far has simply been forcing shorts out of their over-eager positioningA beautiful display of maximum pain for leverage traders
I doubt it'll stop anytime soon but would love to be surprised pic.twitter.com/6tNj5LusZw— DonAlt (@CryptoDonAlt) May 9, 2023
According to DonAlt, the gradual decrease in Bitcoin’s value has been consistently accurate, with each bounce observed being an attempt to force short positions out of the market.
DonAlt views this as a painful experience for leverage traders and expects the trend to persist, although he remains open to surprises.
The trader also highlights the challenges Bitcoin faces due to regulatory crackdowns on cryptocurrencies by US authorities. DonAlt plans to reinvest in Bitcoin after the US government’s anti-crypto efforts subside, noting that the current value of $30,000 has significantly changed the dynamics compared to when Bitcoin was undervalued at $16,000.
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DonAlt acknowledges the US government’s active suppression of the cryptocurrency industry and intends to wait for their efforts to fail before considering investment opportunities.
In terms of price predictions, DonAlt foresees Bitcoin’s value potentially dipping to around $26,700 in the near future. He suggests that Bitcoin’s price may fluctuate within a range and is unlikely to move substantially upward until trading volume cools.
DonAlt emphasizes the risks leveraged traders face, stating that most of them may lose their investments, and this trend will only subside when trading volumes approach zero. The process involves wiping out long positions, followed by short positions, and finally settling into sideways movements with significant price swings that gradually eliminate remaining traders.
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.
