A widely followed crypto analyst says that one memecoin will likely outperform dog-themed rivals, Dogecoin (DOGE) and Shiba Inu (SHIB).
Pseudonymous Trader Altcoin Sherpa tells are 196,400 X followers that Pepe (PEPE) bounced off a critical support level at $0.00000122 and likely has more room to run.
He uses Fibonacci retracement levels, a method of technical analysis, to determine the support and resistance levels of assets.
Sherpa also suggests that Pepe’s relatively low market cap compared to DOGE and SHIB indicates that the memecoin has greater growth potential.
“PEPE: I am exiting the .786 fib (Fibonacci), I still have a position and intend to hold it for a while.
I think it probably outperforms DOGE and SHIB given their respective market caps overall.”
At the time of writing, Pepe is trading at $0.00000123, down 1.2% over the past 24 hours.
With a market cap of $518.2 million, Pepe is the 80th largest digital asset by market capitalization. DOGE ranks eighth with a market cap of $10.7 billion. SHIB is 15th with a market cap of $5.8 billion.
The analyst too looks like at layer-2 scale solution Polygon (MATIC). He says Polygon is likely to underperform in the medium term after failing to hold the $0.80 range last July and trading down since then.
“MATIC: I haven’t checked this chart in a while, I think it’s probably underperforming other chains in the medium term. Other stories, such as ZK/ARB type chains, are probably better bets.”
Polygon is trading at $0.68 at the time of writing, up 0.4% over the past 24 hours.
Then the trader say that smart contract platform Fantom (FTM) could print a double bottom bullish pattern on the three-day chart, which could push it towards the $0.60 level in early 2024.
“FTM: Not one who actively trades IMO (in my opinion) expects more of a slow deterioration. That said, it’s entering an area of interest and wouldn’t be surprised to see some sort of double bottom emerge. This has been on the catwalk for years.”
Fantom is trading at $0.23 at the time of writing, up 0.7% over the past 24 hours.
Finally, the trader say DOGE has a key support level above the 200-day exponential moving average (EMA) and is likely to break to the upside. However, he says that a DOGE bounce can take some time.
“DOGE: Still a solid level for Dogecoin IMO, 200 days EMA here. I have a feeling this is going to pump eventually, but you have to ask yourself what the opportunity cost is for it. It’s one of the more secure transactions you can make, though IMO.
Dogecoin is trading at $0.0760 at the time of writing, up 1.5% over the past 24 hours.
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Image generated: Midway through the journey