Are memecoins still the way to go?

Meme coins have been the talk of the town in recent weeks. We saw them everywhere, and there are people who have made a lot of money with them. This is what hype in a cycle can do - it's like a bell that keeps getting inflated, and the bigger this bell gets, the more people get FOMO (fear of missing out) and want to join the hype of the moment. Because you wouldn't want to miss the boat...

Of course, this speculative approach to the market is not what we recommend. Investing in meme coins in the hope of hitting the jackpot is very risky and is likely to fail.

However, where there is hype, there is volatility, and this naturally brings opportunities in the trading world. These hype coins create a lot of price fluctuations and can therefore offer many opportunities. Now the big question is: are there still opportunities in the realm of meme coins? Or should we focus on other assets?

We will answer this question in this trade letter and take a look at the charts of PEPE, WOJAK, FLOKI, and DOGE.

PEPE-USDT

Click here: 1h-timeframe

Let's start with PEPE, which was obviously the coin that started all the hype. After the listing on Binance, we saw an absolute peak, but since then, the coin has been slowly losing its value. We can clearly see a downtrend with a series of lower highs.

Click here: 1h-timeframe

When it comes to the chart, I mainly look at two scenarios. In this case, we missed the opportunity for a good short. The possibility for a short was the bearish retest of the red resistance area. If the price were to come back towards the red area, I would see if we could gain that area and flip it into support. If we continue to drop from the current prices, the order block on this 1-hour timeframe is where I would look for a potential setup to go long.

WOJAK-USDT

Click here: 1h-timeframe

WOJAK looks very weak when we look at the chart. Personally, I would not be interested in longing this coin. However, you could look for a potential short opportunity. If we look at the PEPE chart from the previous paragraph, we can see that WOJAK has not yet had the bearish retest of the previous resistance area. The trend is clearly downward, and a bearish retest of the resistance area could be a new lower high, indicating a continuation of the downtrend.

If you insist on looking for longs, a flip of the red area is crucial. A lower area to go long would be the green area, but this would involve more risk as you would be trading against the trend.

FLOKI-USDT

Click here: 1D-timeframe

DOGE-USDT

Click here: 1D-timeframe

Lastly, probably the most well-known meme coin of them all, Dogecoin. Looking at the daily chart, we are currently in a no-trade zone. You would have to wait for an opportunity, but even then, you should be cautious because it's not the most attractive chart.

In this case, you should consider the following scenarios. If the price goes up from here, we will encounter the red resistance zone. This could be a potential short if we can identify a setup on the lower timeframe. Flipping the resistance will provide more upward momentum.

If the price continues to drop, the support zone of interest would be the support block around $0.058-0.06.

In conclusion, I wouldn't really focus on meme coins anymore. The charts don't look promising, and it seems like they are losing their steam. If the hype picks up again, of course, we can look for trades, but for now, I would suggest focusing on other things like Bitcoin and Ethereum.

Have a great weekend, everyone!

Written by: Daan Foppen