Memecoin boom? Why these tokens could rally this November!

Memecoins are leading altcoins, signaling a possible “meme-driven” cycle after the elections.
However, one key condition must be met for this to materialize.

As a seasoned crypto investor with a decade of experience under my belt, I’ve seen my fair share of market cycles and trends. The recent surge of memecoins is definitely catching my attention, especially given their striking resemblance to the meme-driven cycle we witnessed in March 2021. However, as I’ve learned from past experiences, history tends to repeat itself only until it doesn’t.

1) The rise in meme coins, currently accounting for about 3% of the market, is reminiscent of the mid-March period when Bitcoin reached an unprecedented peak of $73,000. This resurgence occurs as the total crypto market capitalization edges towards a staggering $2.7 trillion.

By the beginning of April, meme tokens’ market share soared to 4% due to investors shifting their investments towards high-value tokens.

As elections draw near, Bitcoin (BTC) is expected to receive a large influx of funds, sparking discussions on whether meme coins might experience a strong surge. Given past trends, it’s possible that the peak for meme coins in this cycle may occur around mid-November.

Memecoins are outperforming altcoins

Approximately six out of ten popular meme coins are experiencing growth right now, indicating that they’re attracting investment that was previously focused on Bitcoin. On the other hand, many alternative coins are finding it challenging to generate the same level of attention or investment.

Topping the charts is Dogecoin, recording a weekly surge of more than 24%, making it the top performer in the past week. Typically, such significant increases might indicate that the current trend could be nearing its zenith, as retail investors often start taking measures to mitigate market volatility.

On the other hand, during this market phase, macroeconomic factors are playing a more prominent role, particularly since elections are just around the corner.

Source : SpotOnChain/X

One way to rephrase the given text while keeping it natural and easy to read is: “Bitcoin’s surge towards its all-time high has been significantly fueled by BlackRock investing an unprecedented $872 million in a single day. In comparison, ETFs focusing on Ethereum saw more modest inflows of $4.4 million, indicating less enthusiasm.

During this bullish period, the observed trend supports AMBCrypto’s previous assumption: much like in past cycles, meme coins seem to be capturing more investment compared to other altcoins.

For a complete meme coin surge, it seems that Bitcoin might have to reach its peak in the market. The current inflow of net deposits on trading platforms indicates potential selling force, but the bullish MACD intersection implies there could be more price increase prior to any significant downturn.

As fear of missing out (FOMO) pushes Bitcoin prices higher, there might be a resistance point around $75,000 following the election. If Bitcoin experiences a peak and subsequently corrects, investment could shift towards memecoins, possibly igniting a cycle of memecoin growth by mid-November, as predicted by AMBCrypto.

So, should you buy the dip?

In my recent observations, I’ve noticed that a majority of meme-based cryptocurrencies have seen substantial growth over the past month, with six out of the top ten performers being these memecoins.

As a crypto investor, I firmly believe that for the full potential of our investment to be realized, it’s essential that we, as holders, recognize the current prices as attractive opportunities for purchase. By doing so, we can collectively support this theory and contribute to its materialization.

Source : IntoTheBlock

It’s noteworthy that a significant portion (62%) of DOGE‘s larger groups are whales, and they have been buying large quantities of DOGE tokens off exchanges during the last month.

This approach aligns with the idea that a new wave of meme coins is imminent, since they profit from the decline in alternative cryptocurrencies and the expected surge in volatility when Bitcoin reaches its maximum value.

It appears that the chances of a cycle in memecoins following the election are quite strong. Yet, even though these large investors profit from the gains, their long-term dedication is crucial. Given that altcoins seem to be losing steam, and considering past trends as a guide, memecoins might be ready for a robust surge.

2024-11-01 02:16

Memecoins are outperforming altcoins

So, should you buy the dip?

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