A well-known cryptocurrency trader, who is renowned for his accurate predictions, has taken a sudden bearish stance on memecoins. Operating under the pseudonym DonAlt, the analyst has warned his substantial following on the social media platform X that memecoin projects could collapse unexpectedly. DonAlt believes that the era of memes is coming to an end, while acknowledging that the rest of the market may weather the storm. However, he cautions those with portfolios heavily invested in dog or cat iterations, as they may face major losses.

In terms of specific memecoins, DonAlt highlights Pepe (PEPE), stating that it could experience a significant drop if it fails to maintain support at the $0.00000998 level on the daily chart. He sees a decent breakout for PEPE currently, indicating a bullish trend as long as it remains above this level. However, if it fails to do so and falls back into the range, DonAlt plans to short it, targeting the range lows. While he prefers to focus on WIF, he may spread his bets across multiple memecoins.

At the time of writing, Pepe is trading at $0.00001004, experiencing a 4.5% decline in the last 24 hours. DonAlt also expresses concerns about memecoin dogwifhat (WIF), suggesting that it could plummet to around the range low of $2.23 if it fails to establish support at the range high of $3.15. He is actively seeking to short the range high and aims for a position below the range low. However, if the range is convincingly broken, DonAlt admits that he would be wrong in his strategy.

The analyst goes on to provide several reasons for his bearish stance on memecoins. Firstly, he notes the infinite number of memes already in existence, with thousands more being created daily. He also criticizes the buying frenzy surrounding the GME-meme rotation narrative, which he believes to be foolish. Additionally, DonAlt points out that the charts for memecoins are not showing positive signs, and sentiment in the market is heavily skewed towards bullishness.

It is important to note that the opinions expressed by DonAlt are not investment advice, and investors should conduct their own research before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl, where this information originated, does not endorse the buying or selling of cryptocurrencies or digital assets, nor is it an investment advisor. The Daily Hodl also participates in affiliate marketing.