The widely followed crypto trader who accurately predicted the November 2022 Bitcoin (BTC) bottom has warned that a meme coin will explode after posting huge gains.
The analyst, known in the crypto market under the pseudonym DonAlt, claims that the popular meme coin Pepe (PEPE) will go to zero did. The chart shared by the analyst shows Pepe suddenly crashing after skyrocketing within weeks. According to the analyst, the meme coin will have no value in three to five years:
“Where is PEPE going now? Spoiler alert: The answer is zero. Just wait three to five years until you reach the target.”
The meme coin has lost 62.74% from its all-time high of $0.00000431, which it reached on May 5. Pepe, the 65th largest crypto by market cap, skyrocketed in a matter of weeks from its all-time low of $0.000000055142 recorded on April 18.
The crypto analyst evaluated not only PEPE but also Bitcoin price. The analyst predicts that the crypto currency will continue to lose value in the near term.
$BTC update:
Slow bleed has been very accurate.
Every bounce so far has simply been forcing shorts out of their over-eager positioningA beautiful display of maximum pain for leverage traders
I doubt it’ll stop anytime soon but would love to be surprised pic.twitter.com/6tNj5LusZw— DonAlt (@CryptoDonAlt) May 9, 2023
DonAlt also thinks that Bitcoin is facing headwinds from pressures on the crypto market by US regulators. He also reveals that he plans to reinvest in BTC after the US anti-crypto effort subsides.
“At the $16,000 level our valuation was so low that anything could have happened and we would have barely made it up.
$30,000 is a different story.
I think the US government is actively trying to kill this space, people forget.
Personally, I’ll give them some time to fail and then I’ll buy the coins.”
DonAlt also predicts that Bitcoin will drop to $26,700 in the near term. He also adds that Bitcoin will fluctuate for a while and likely won’t make an upside break until trading volume cools.
“I wasn’t kidding when I said that most leveraged traders would lose all their money in this environment.
This won’t stop until trading volumes get close to zero in my opinion. First the long position attacks, then the short position, then the sideways movement with big blows on both sides to kill the rest.”
You can follow the current price action here.