Decentralized Finance (DeFi) analyst Stacy Moore has warned that the rise in popularity of memecoins may signal the end of the current bull trend for cryptocurrencies.
Following Massari’s research on coin investing, Moore predicts that investors should consider locking in profits.
Why Stacy Moore is speculating at the top of the market
Masari’s analysis reveals a pattern in cryptocurrency markets that typically begins with significant investments in cryptocurrency infrastructure projects.
“This makes a lot of sense: crypto bull markets typically start with BTC or smart contract platforms due to factors like liquidity, risk-reward profiles, and technological breakthroughs. These assets signal that ‘cryptocurrencies are not dead,’ attracting speculation,” Moore explained. And development.
The investment trend then shifts towards more volatile assets such as meme currencies, known for their potential quick gains. However, Moore warns that meme coins are usually the first to fall, marking the end of a speculative wave across the cryptocurrency spectrum.
Read more: 7 Popular Meme Coins and Altcoins That Are Popular in 2024
Currently, Muur reports a decline in memecoin activities, which indicates a decline in trading volume on platforms like Pump.fun, which support the creation and trading of these assets.
“In their research, Massari proposes the following investment framework based on this pattern: Buy memes when classic DeFi/crypto coins start to rise. Then, move the entire portfolio to cash and freeze trading when meme coins fall beyond the threshold.
Moore’s thesis sparked controversy among its followers. Some critics on its X thread (formerly Twitter) argue that the current cycle deviates from the past.
“The framework of this entire thesis is wrong. Memes were the first to pump up this cycle, unlike in the past. We are now moving into a higher liquidity cycle with interest rate cuts. We are not close to the peak,” said one X user.
Other analysts share more doubts. This month, BeInCrypto reported insights from an analyst who pointed out three important signals in the market:
Celebrity endorsements for coins. A surge in new coins and a flood of PnL screenshots on social media.
The growing involvement of celebrities in meme currencies, with figures such as Caitlyn Jenner, Iggy Azalea, and Andrew Tate launching their own cryptocurrencies, mirrors previous market peaks in 2017 and 2021.
Read more: Cryptocurrency Scam Projects: How to Spot Fake Tokens
Additionally, the creation of over a million new meme coins in April alone indicates intense market speculation. This situation, combined with the widespread sharing of PnL screenshots, indicates that the market may be approaching a turning point.
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