A widely followed crypto analyst is issuing a warning to traders that Dogecoin (DOGE) is hinting at a possible reckoning for memecoins.
In a new video update, Nicholas Merten, the host of DataDash, tells his 511,000 YouTube subscribers that Dogecoin barely moving during the most recent meme token craze means that meme assets may be in danger.
According to Merten, Dogecoin losing the small gains it made last month could mean that the memecoin trend is “fake.”
“What does that tell you when Dogecoin, the biggest memecoin out there, doesn’t even make a slight move to the upside during this meme craze?
It was up 3% last month, all the gains that it made faded. If Dogecoin doesn’t hold up, what does it tell you about Pepe? What does it tell you about all these other memecoins that did well? It tells you that it’s a fake trend, it’s nothing substantial, there’s nothing real to it, it is people propping it up with initial liquidity.”
Merten goes on to say that investors should really only be looking to trade altcoins during bull markets as historically, altcoins tend to bleed out against Bitcoin (BTC) and the US dollar the majority of the time.
“It has been unfavorable to purchase Dogecoin ever since back when the market truly peaked in altcoins in April and May of 2021. That was when really the euphoria was in and time and time again, just like in previous cycles for Dogecoin, if we take a look back at history, it’s a great gauge [to] flip back on and learn about how it’s only favorable to trade altcoins when we’re really in a bull market and when we’re in an altcoin cycle, and they come very rarely.
The vast majority of the time, altcoins are bleeding not just against Bitcoin but [also the] dollar.”
Dogecoin is trading for $0.0706 at time of writing, a 3.2% dip during the last 24 hours.
Generated Image: Midjourney
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