Mechanism Capital Co-Founder Andrew Kang: 98% of Altcoins Have Topped the Cycle, Only Meme Coins Can Create New Highs

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.

Andrew Kang, the co-founder of Mechanism Capital, has stated that more than 98% of altcoins have already topped the cycle, and only a handful of coins can create new highs in Q4 2024 or Q1 2025.

His analysis follows 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 are among the few altcoins that could create new highs, according to Kang. While meme coins were among the worst-hit tokens during the recent bearish trend, 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 added.

Some analysts are already anticipating 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 come back into play.

Kev also notes that the worst is over for DOGE after a 60% correction from previous highs. He said that in previous cycles, DOGE averaged a 50%-60% correction before heading toward a recovery. Hence, the meme coin could be following a similar trend.

Shiba Inu (SHIB) also shows strength as 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 suggests 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 indicate a balance in market sentiment and a neutral market condition. With the selling pressure into SHIB subsiding, the price could reverse upwards.

The above is the detailed content of Mechanism Capital Co-Founder Andrew Kang: 98% of Altcoins Have Topped the Cycle, Only Meme Coins Can Create New Highs. For more information, please follow other related articles on the PHP Chinese website!