Meme coin mania is here: DOGE, PEPE, SHIB, FLOKI, BYTE...
The signs were there. Did you spot them? Here's how to find them next time.
In this cycle, the first meme coin mania started on Solana. That was a great social engineering to get the Solana ecosystem hyped and break records.
It worked.
BONK and WIF absolutely broke records exceeding one billion in market cap. That was your first signal to pay attention to meme coins. The second signal was price action.
DOGE, PEPE, SHIB, FLOKI, and BYTE gave clear signals they were about to pump. This is why I covered them in Alpha Post #12 and #15 before they doubled, tripled or quadrupled in price a few weeks later.
Let’s look at them closer. TLDR at the end.
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DOGE
Use DOGE as an index to quickly assess the meme coin market. It’s the current leader with over $20 billion in market cap. That’s a lot of money for a meme coin. I spotted the price action shifting and wrote about it early in Alpha Post #15.
Back then, the price was at 8 cents and it was giving clear signals it wants to break out from that huge range that kept the price under 10 cents for over a year. With a bull market in full swing, your odds at success never looked better. This trade was worth the risk and you were early at under 10 cents (see here why).
A week later after my post, DOGE doubled in price! Whenever the price breaks from a formation that kept it in check for months or even years, expect high volatility. DOGE delivered. Its all-time high is at 74 cents. The big question is if it can reach $1 this cycle? If so, there is a long way up still.
PEPE
PEPE mirrored the price action of DOGE, but multiplied it by more than 4x. An entry in late February would have been an absolute steal. The reason memes like PEPE pump more is because their market cap is lower.
It’s hard to pump DOGE to a 4x at 20 billion market cap, but PEPE was under 1 billion when the pump started. The same amount of money that can double DOGE can 10x PEPE. Higher risk, higher reward.
With this latest pump, PEPE exceeded its previous ATH. That means we are in unknown territory. The sky is the limit, but expect volatility, in both ways.
SHIB
SHIB only tripled since my initial post. If we look at the previous pump in 2022, we can see that this rally can still continue for a few weeks. Perhaps even break the current all-time high.
FLOKI
FLOKI did not disappoint either and did an easy 3x after breaking this ascending triangle. Still some way to go, but if it consolidates in this area, the next pump will take it to ATH.
BYTE
I left BYTE at the end because this is a new meme coin that I covered exclusively in Alpha Post #12. The reasons for that are listed in that post. In a nutshell, this is a promising ETH meme coin that was under 20 mil market cap when I fist posted about it in our Patrons group.
If you managed to scoop BYTE when I posted about it you should have already doubled or tripled your money. Back then, I suggested an entry around $0.000015 which was more than excellent considering the pump that followed.
The price made a local top at $0.00005, but this ascending channel is bullish and after BYTE finds support during this correction, higher highs become possible.
I recommend de-risking (taking profits) when BYTE approaches and exceeds 100 mil market cap. Also keep a moon bag, but make sure you secure your principal and something on top as the price pumps, especially if you >10x on it.
New meme coins can be extremely risky, but if something looks promising, grabbing a bag at a low market cap can make a huge difference. In such cases, the risk/reward becomes attractive. BYTE fitted that description when I first saw it.
Words of caution
Buying when a coin already pumped by 100%, 200% or 400% is not recommended. Do not FOMO because you are late. The above are examples of what is possible in crypto and is not financial advice. You should do your own research, strive to be early, and find asymmetric trades - i.e. manageable risks, high returns.
Meme coins have no use case. Their only use case is to move money from other pockets to your pocket. It’s mostly a zero sum game. That means any profits you make come from someone else. That is why those that sell the top and don’t FOMO back in, win.
Wait for your opportunity.
If you missed the Solana meme coins, you still had an entry with Ethereum meme coins. If you missed this last pump as well, wait for the next opportunity. Don’t rush now and buy another copy of Doge, Shiba or WIF. That may not deliver similar results.
Either way, 2024 is a bullish year. Therefore, you still have at least 10 months or so to find your luck. Be patient, it will come if you spot the right opportunity. Meme coins are just one of many.
TLDR & Tips to Remember
Meme coins are back with a splash after breaking into new highs
After Solana made waves, Ethereum meme coins were the next to follow
Use DOGE as an index, once it starts moving other memes coins will follow
The lower the market cap of a meme coin, the higher it pumps
Finding good meme coins is hard, but the payout is big if you get in early
Don’t FOMO post-pump, that can burn you, wait for a good entry
If you missed a narrative that already pumped, wait for the next one
The bull market is far from over, there will be more narratives to ride later
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All info is provided for educational purposes only and is not financial advice.
I feel like Memecoin and Altcoins are the only ways for a common man to join cryptocurrency based the ETF activities we’ve witnessed recently.
Wild to watch these coins pump. Even more, to watch my own mind start to collapse and give in when knowing better. Investing is amazing, for many reasons, but prominently regarding the fluctuations of our inner world. Thanks for the piece and perspective.