These 2 Meme Coins Will Show Us If The 'Mania' Continues, Says Trader: But It's Neither DOGE Nor SHIB

Pseudonymous crypto trader Dentoshi thinks the performance of meme coins Dogwifhat WIF/USD and Pepe PEPE/USD could signal the continuation or end of the current “memecoin supercycle.”

What Happened: Dentoshi, known for his technical analysis, took to his social media account to analyze the situation of the two popular meme coins.

A strong reaction off the 0.382 Fibonacci level for WIF could indicate a direct continuation of the uptrend. Dentoshi reminds reader that the meme coin attempted this in May, stating, "We tried in May with WIF, pumped 30% higher from entry but wasn’t able to sustain."

The second scenario, which Dentoshi seems to view as more critical at this juncture, involves a deeper retracement into the 0.618 to 0.707 Fibonacci zone. He suggests that if the market still has momentum, this should represent the lowest point of the pullback before a potential upward move.

The trader emphasizes the importance of confirmation before entering a position, advising traders to get involved only after seeing a clear breakout from this area.

For the unfamiliar, Fibonacci retracement levels are horizontal lines on a chart that indicate potential support and resistance levels for a meme coin.

Also Read: Pepe Leapfrogs Dogecoin, Shiba Inu In 30-Day Gains, Trading Volume: ‘No One Is Bullish Enough,’ Says Trader

Why It Matters: The trader’s analysis implies that the current price action of WIF and PEPE could be at a pivotal point.

If these meme coins show strength and bounce from these deeper Fibonacci levels, it might signal a continuation of the broader meme coin trend and possibly influence the overall crypto market sentiment.

Dogwifhat and Pepe individually and combined have higher trading volumes in the past 24 hours in comparison to Dogecoin and Shiba Inu. Total meme coin market capitalization currently stands at $46.3 billion, a 4.1% increase in the past 24 hours.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: 

• ‘Shiba Inu Killer’ Dogwifhat Erupts For 17% Gain, Will Erase ‘Six Months Of Downtrend In 2-3 Weeks,’ According To Trader

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