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 its 511,000 YouTube subscribers that Dogecoin barely moves during the most recent meme token craze means that meme assets may be at risk.
According to Merten, the loss of Dogecoin’s small profits last month could mean that the memecoin trend is “fake”.
“What does that say if Dogecoin, the biggest memecoin out there, doesn’t even make a small upward move during this meme craze?
It was up 3% last month, all the gains it made faded. If Dogecoin doesn’t last, what does it say about Pepe? What does it say about all those other memecoins that did well? It tells you it’s a fake trend, it’s nothing substantial, there’s nothing real about it, it’s people backing it up with initial liquidity.
Merten goes on to say that investors should really only want to trade altcoins during bull markets, as historically, altcoins usually tend to bleed out against Bitcoin (BTC) and the US dollar.
“It has been unfavorable to buy Dogecoin since the market really peaked in altcoins in April and May 2021. That’s when the euphoria was really there and again and again just like in previous cycles for Dogecoin when we look back at the history it’s a great gauge [to] turn back and learn how it is beneficial to trade altcoins only when we are really in a bull market and when we are in an altcoin cycle, and they are very rare.
The vast majority of the time, altcoins not only bleed against Bitcoin, but also [also the] dollars.”
Dogecoin is trading at $0.0706 at the time of writing, down 3.2% in the past 24 hours.
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