A popular cryptocurrency analyst has hinted at short-term optimism for a competitor to Dogecoin (DOGE) and Shiba Inu (SHIB), following a substantial correction in the meme cryptocurrency market after a prolonged rally.
The pseudonymous cryptocurrency analyst, Kaleo, shared with his over 580,000 followers on the microblogging platform Twitter that he believes the meme-onspired cryptocurrency $PEPE, currently the third-largest of its kind by market capitalization, may have further room to grow.
Kaleo’s analysis indicates that every time Pepe has managed to break above a declining trend line on the hourly chart since its mainstream adoption last month, it has successively hit fresh all-time highs.
At the time of writing, PEPE is trading at $0.000001606 after falling from an all-time high of 0.000003995, according to available market data. Kaleo has offered those contemplating long-term investments in meme cryptocurrencies a note of caution, saying the majority of these are likely to depreciate in value over time.
While he respects those who are comfortable with such high-risk, high-reward investments, he advises against the notion of holding onto a meme coin for the long term.
As CryptoGlobe reported, the meme-inspired cryptocurrency’s price drop has recently cost a cryptocurrency whale around $500,000. The drop comes after the cryptocurrency was listed on Binance, and after a fortunate cryptocurrency investor has seemingly managed to turn an investment of just 0.125 ETH in PEPE into a staggering $1.14 million in just a matter of days by buying into it at the right time.
The rise of meme-based cryptocurrencies has been a phenomenon in the world of digital finance. In recent years, established meme-inspired cryptocurrency Dogecoin ($DOGE) saw its popularity explode as rivals including Shiba Inu ($SHIB), Babydoge ($BABYDOGE) Wojak ($WOJAK), and ArbDoge, have been created and garnered significant attention.
Memecoins have become a sensation as these cryptocurrencies offer investors an opportunity for significant financial gains, as demonstrated by the recent PEPE success story.
However, the rapid rise and potential volatility of meme coins also pose significant risks to investors, especially those who may be new to the world of cryptocurrency, as many end up underwater after buying.
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