The co-founder of Mechanism Capital, Andrew Kang, believes that more than 98% of altcoins have topped the cycle, and only a handful of coins can create new highs in Q4 2024 or Q1 2025.
His analysis comes after last week’s turmoil in the cryptocurrency market, which saw many coins plunge by double-digit percentages. Kang has observed that most altcoins peaked before the recent crash, and only a few can recover to record highs in the coming months.
Meme Coins Could Make New Highs
Kang noted that meme coins are among the few altcoins that could create new highs in the coming months. Although meme coins were among the worst-hit tokens during the bearish trend that recently engulfed the market, they could emerge as the top gainers in the last quarter of the year.
“Memes probably constitute a majority of the coins that have a chance of making new highs. Hundreds of thousands of meme coins, though, so you need to be quite selective,” Kang stated.
Some analysts are already predicting a positive recovery in meme coins. According to @DaanCrypto on X, Dogecoin (DOGE) is already showing signs of a solid upward break.
Dogecoin was trading at $0.1073 at the time of writing after a 0.04% dip in 24 hours. If the largest meme coin recovers above the $0.12 price, the analyst believes the bullish momentum will again be in play.
@Kev_Capital_TA also notes that the worst is over for DOGE after a 60% correction from previous peaks. He said that in previous cycles, DOGE averaged a 50%-60% correction before heading toward a recovery. Therefore, the meme coin could be following a similar trend.
Shiba Inu (SHIB) also shows signs of strength as the selling pressure wanes. The Relative Strength Index (RSI) remains above 52, indicating a neutral zone and a balance between the buying and selling pressures.
Data from IntoTheBlock confirms that whales are not selling SHIB despite the recent price decline. 77% of SHIB holders have held the meme coin for over a year, while less than 2% have held the token for under a month.
IntoTheBlock also shows that 48% of addresses are In the Money (ITM), while another 48% are Out of the Money (OTM). These percentages show a balance in market sentiment and a neutral market condition. With the selling pressure into SHIB subsiding, the price could reverse upwards.