A widely followed trader who called the November 2022 Bitcoin (BTC) bottom is warning one memecoin is going to implode after putting up huge gains.
Pseudonymous trader DonAlt tells his 484,600 Twitter followers that the Dogecoin (DOGE) and Shiba Inu (SHIB) rival Pepe (PEPE) is going to eventually breakdown to zero.
His chart shows Pepe’s sudden fall after skyrocketing within weeks, and he predicts the memecoin will not be worth anything in three-to-five years.
“Where does PEPE go next?
Spoiler alert: The answer is zero Just gotta wait three-five years until it hits the target.”
Pepe is trading for $0.00000159 at time of writing, down 16.1% during the past 24 hours.
The meme token is down 62.74% from its all-time high of $0.00000431, which it hit on May 5th. Pepe, the 65th-largest crypto by market cap, had skyrocketed in a matter of weeks from its all-time low of $0.000000055142, which it recorded on April 18th.
Next, DonAlt weighs in on Bitcoin. He predicts the king crypto will likely continue to dip in value in the near term.
Slow bleed has been very accurate. Every bounce so far has simply been forcing shorts out of their over-eager positioning.
A beautiful display of maximum pain for leverage traders I doubt it’ll stop anytime soon but would love to be surprised.”
DonAlt also says that Bitcoin is facing headwinds from the crackdown on crypto by US regulators. He says he plans to reinvest in BTC after the US’s anti-crypto effort subsides.
“At $16,000 we were so undervalued, anything could’ve happened and we would’ve barely budged.
At $30,000 that’s a different story.
I feel like people forgot that the US government is actively trying to kill this space.
I’ll personally give them some time to fail and then I’ll buy the coins.”
DonAlt is also predicting Bitcoin will dip down to the $26,700 level in the near term. He also says that Bitcoin will chop around for a while and will not likely make a break to the upside until trading volume cools.
“I wasn’t kidding when I said the majority of leverage traders are gonna lose all their money in this environment.
This will not stop until trading volumes are near zero IMO (in my opinion). First nuke longs, then shorts, then go sideways with outsized impulses on either side to kill the rest.”
Bitcoin is trading for $27,161 at time of writing, down 3.9% during the past 24 hours.
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Featured Image: Shutterstock/Profil_zero/WindAwake