Altcoins
Shiba Inu and Dogecoin to Lead Memecoin’s Unexpected Explosion as 98% of Altcoins Peak ⋆ ZyCrypto
Mechanism Capital co-founder Andrew Kang believes that over 98% of altcoins have reached cycle highs and that only a handful of coins can reach new highs in Q4 2024 or Q1 2025.
His analyses It comes after last week’s tumult in the cryptocurrency market, which has seen many coins crash by double-digit percentages. Kang noted that most altcoins peaked before the recent crash, and only a few can recover to record highs in the coming months.
Meme Coins Could Reach New Highs
Kang noted that meme coins are among the few altcoins that could make new highs in the coming months. While meme coins have been among the hardest hit tokens during the recent bear market, they could emerge as the biggest gainers in the final quarter of the year.
“Memes probably make up the majority of coins that have a chance of reaching new highs. Hundreds of thousands of meme coins though, so you have to be very selective,” Kang said.
Some analysts are already predicting a positive recovery for meme coins. According to @DaanCrypto on X, Dogecoin (DOGE) is already showing signs of a solid breakout upwards.
At the time of writing, Dogecoin was trading at $0.1073 after a 0.04% decline in 24 hours. If the largest meme coin recovers above the $0.12 price point, the analyst believes the bullish momentum will come back into play.
@Kev_Capital_TA also Notes that the worst is over for DOGE after a 60% correction from previous peaks. He said that in previous cycles, DOGE has had an average correction of 50%-60% before heading for a recovery. Therefore, the meme coin could follow a similar trend.
Shiba Inu (SHIB) is also showing signs of strength as selling pressure eases. The Relative Strength Index (RSI) remains above 52, indicating a neutral zone and a balance between buying and selling pressure.
IntoTheBlock data confirms that Whales don’t sell SHIB despite the recent price drop. 77% of SHIB holders have held the meme coin for over a year, while less than 2% have held the token for less than a month.
IntoTheBlock also shows that 48% of the addresses are In the Money (ITM), while another 48% are Out of the Money (OTM). These percentages show a balance in market sentiment and a neutral market condition. With the selling pressure in SHIB subsiding, the price could reverse to the upside.