The recent market turmoil has left many altcoins reeling, with analyst Andrew Kang of Mechanism Capital predicting that over 98% have likely reached their peak for this cycle. This raises the question: where will future gains come from? Surprisingly, Kang believes meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) could be the answer.
This might seem counterintuitive, considering meme coins were hit hard during the downturn. However, Kang argues that their very nature—driven by hype and social media trends – makes them uniquely positioned for explosive growth. “Hundreds of thousands of meme coins exist,” he cautions, “so selectivity is crucial.”
Several analysts are already eyeing a meme coin comeback. DaanCrypto on social media platform X points to DOGE as a prime example. Despite a recent dip, DOGE is showing signs of a potential breakout. If it surpasses the $0.12 resistance level, DaanCrypto believes a bullish trend could take hold.
Technical analyst Kev_Capital_TA echoes this sentiment, highlighting DOGE’s historical resilience. He observes that, in previous cycles, DOGE typically experienced a 50–60% correction before bouncing back. The recent 60% drop suggests a similar pattern might be unfolding.
Shiba Inu (SHIB) also hints at potential strength. Its Relative Strength Index (RSI) remains above 52, indicating a neutral zone where buying and selling pressures are balanced. Additionally, data from IntoTheBlock reveals that whales—large token holders—haven’t been selling SHIB despite the price decline. In fact, a staggering 77% of SHIB holders have been holding on for dear life) for over a year, suggesting long-term confidence in the project.
IntoTheBlock’s data further demonstrates a balanced market sentiment, with nearly equal portions of addresses “in the money” (those who bought at a lower price) and “out of the money” (those who bought at a higher price). This equilibrium, combined with subsiding selling pressure, could pave the way for a SHIB price reversal.
While the future remains uncertain, the resilience of meme coins and the potential for renewed hype could rewrite the narrative for the altcoin market. With most altcoins seemingly reaching their peak, Dogecoin and Shiba Inu might be the unexpected heroes leading the next wave of cryptocurrency gains.