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, DataDash host Nicholas Merten tells his 511,000 YouTube subscribers that Dogecoin is barely budging during the latest meme token craze, which means meme assets may be endangered.
According to Merten, Dogecoin’s loss of the small gains it made last month could mean that the memecoin trend is “false.”
“What does that tell you when Dogecoin, the biggest memecoin out there, doesn’t even make a slight move up during this meme craze?
It was up 3% last month, all the gains it made wiped out. If Dogecoin doesn’t hold up, what does that tell you about Pepe? What does it tell you about all these other memecoins that did well? He tells you that it is a false trend, it is nothing substantial, there is nothing real about it, it is people who support it with initial liquidity ”.
Merten goes on to say that investors should really only look to trade altcoins during bull markets, as historically, altcoins tend to bleed out against Bitcoin (BTC) and the US dollar most of the time.
“It has been unfavorable to buy Dogecoin since the market really peaked in altcoins in April and May of 2021. That’s when the euphoria really kicked in and time and time again, just like in previous Dogecoin cycles, if we take a look at history, it’s a great indicator. [to] Turn it back on and learn how it is only favorable to trade altcoins when we are actually in a bull market and when we are in an altcoin cycle, and they happen very rarely.
The vast majority of the time, altcoins are bleeding not just against Bitcoin but [also the] dollar.”
Dogecoin is trading at $0.0706 at the time of writing, down 3.2% over the past 24 hours.
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