Andrew Kang, co-founder of Mechanism Capital, suggests that over 98% of altcoins have likely already reached their peaks, with only a few poised to achieve new highs in Q4 2024 or Q1 2025.
His analysis follows recent cryptocurrency market turbulence, where many tokens experienced double-digit percentage declines. Kang observed that most altcoins had peaked before the recent market crash, leaving only a handful potentially able to recover to historical highs in the coming months.
Kang highlights meme coins as potential candidates to reach new highs among altcoins in the coming months. Despite significant impacts during the recent bear market, meme coins could be among the top performers in the final quarter of this year.
“Meme coins are likely to be among the majority that can set new highs. However, due to the diverse nature of meme coins, careful selection is crucial,” Kang noted.
Some analysts predict a positive resurgence in meme coins. According to @DaanCrypto on Twitter, Dogecoin (DOGE) has shown strong signs of breaking through resistance levels. Analysts believe that if the price of this leading meme coin can rise above $0.12, bullish momentum may dominate once again.
@Kev_Capital_TA also points out that Dogecoin has retraced 60% from previous highs, suggesting the worst may be over. He notes that historically, Dogecoin tends to undergo 50%-60% retracements before beginning to recover, indicating a potential follow-through of similar market trends.
With reduced selling pressure, Shiba Inu (SHIB) has also shown signs of strength. Its Relative Strength Index (RSI) remains above 52, indicating a neutral market where buying and selling pressures are balanced.
Data from IntoTheBlock reveals that despite recent price declines, whales have not sold their SHIB holdings. 77% of SHIB holders have held the meme coin for over a year, while less than 2% have held it for less than a month.
Furthermore, IntoTheBlock shows that 48% of addresses are in-the-money (ITM), while another 48% are out-of-the-money (OTM). These data suggest a relatively balanced market sentiment, with neutral market conditions prevailing.
As selling pressure on SHIB diminishes, the price could potentially reverse and trend upwards.