A widely followed crypto analyst says that one memecoin will likely outperform dog-themed rivals Dogecoin (DOGE) and Shiba Inu (SHIB).
Pseudonymous trader Altcoin Sherpa tells his 196,400 X followers that Pepe (PEPE) bounced off a critical support level at $0.00000122 and likely has more room to run.
He uses Fibonacci retracement levels, a method of technical analysis for determining an asset’s support and resistance levels.
Sherpa also suggests that Pepe’s relatively low market cap compared to DOGE and SHIB indicates the memecoin has a greater potential for growth.
“PEPE: Moving off the .786 fib (Fibonacci), I’ve still got a position and plan on holding this one for a bit.
I think that it probably outperforms DOGE and SHIB given the respective market caps overall.”
At time of writing Pepe is trading for $0.00000123, down 1.2% during the last 24 hours.
With a market cap of $518.2 million, Pepe is the 80th-largest digital asset by market cap. DOGE is eighth with a market cap of $10.7 billion market. SHIB is 15th with a $5.8 billion market cap.
The analyst also looks at layer-2 scaling solution Polygon (MATIC). He says Polygon will likely underperform in the mid-term after failing to hold the $0.80 range last July and has traded downward ever since.
“MATIC: Haven’t checked this chart in a while, I think that this probably underperforms other chains to be honest in the midterm. Other narratives like ZK/ARB type of chains are probably better bets.”
Polygon is trading for $0.68 at time of writing, up 0.4% during the last 24 hours.
Next up, the trader says that the smart contract platform Fantom (FTM) could be printing a bullish double-bottom pattern on the three-day chart that could send it to the $0.60 level in early 2024.
“FTM: Not one to trade actively IMO (in my opinion), expecting more of a slow grind down. That said, it’s entering an area of interest and wouldn’t be surprised to see some sort of double bottom formed. This one has runway for years.”
Fantom is trading for $0.23 at time of writing, up 0.7% in the last 24 hours.
Lastly, the trader says DOGE is holding a key support level above the 200-day exponential moving average (EMA) and will likely break to the upside. However, he says a DOGE bounce may take some time.
“DOGE: Still a solid level for Dogecoin IMO, 200-day EMA right here. I do feel like this is going to pump eventually but you have to ask yourself about the opportunity cost for it. It’s one of the safer trades you can take, though IMO.”
Dogecoin is trading for $0.0760 at time of writing, up 1.5% during the last 24 hours.
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