According to a closely watched trader, memecoins as well as an additional crypto-subsector will likely outperform other sectors during this current market cycle.
The Flow Horse, a pseudonymous analyst tells His 204,000 followers on social media platform X said that traders who made huge gains on memecoins would likely rotate their capital into other crypto assets, triggering another round of altcoin rallys.
“Forget the wealth effect from Bitcoin or ETH. The profit taking on memecoin capital will create another alt cycle.”
The top analyst in the meme crypto asset space is also bullish Altcoins in the Artificial Intelligence (AI) sector.
“Barbell AI and memecoins portfolio seems to be the [degenerate] play this cycle.”
The Flow Horse, while he sees great potential in AI and memecoins warns the crypto market is starting to show signs of overheating. The trader examines altcoin funding which is a measure of the fees paid to crypto traders with futures and margin positions.
According to the crypto-strategist, altcoin financing is hovering around a high level. A correction to remove overleveraged trader may be in store.
I’ll say it. Last time, we spent one month consolidating below the all-time high level. Alt funding had been around this level and ended up going 2x higher after the ATH was broken.
BTC fell 20% and many alts were down double that amount.
We have four trading sessions that all trade within a very tight range. Expect some f*ckery.
You can always treat the market like the S&P [500] – long and strong above ATHs (Bitcoin in this case), and defensive below.”
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