dailyhodl.com
A veteran trader known for timely crypto calls is issuing a warning over memecoins as he suggests the sector may have reached peaked popularity.
Pseudonymous trader The Flow Horse tells his Telegram channel that memecoins may soon fade as another crypto sector ascends.
“Let me stress this: nothing in this market – or in life, for that matter – is permanent. Some things stay in the spotlight much longer than others, but the longer something remains in the spotlight, the more people forget that everything outside of it still exists. That overlooked space, which seems dark and empty, is where opportunity lies. And remember, nature abhors a vacuum. Memes are an amazing momentum trade, but let’s be clear – they are absolutely a consensus trade now.”
Meanwhile, the trader says real-world asset (RWA) project Ondo Finance (ONDO) may start attracting interest from market participants looking for projects other than memecoins.
“In reference to my Twitter post, I think ONDO might be a candidate. This is a really good place to see a retaking of control by buyers. Most alts that have transitioned higher have painted similar structures. Ondo has seen most derivatives OI (open interest) come off and the unlock schedule is pretty friendly with $40,000 a day of supply hitting daily. Every time consensus happens it sets up a boom somewhere else – as one part of the market being saturated leaves another under-allocated to.”
Looking at his chart, the trader suggests that ONDO is printing a bullish inverse head and shoulders pattern (I-HNS) on the daily timeframe.
Ondo is trading for $0.73 at time of writing, flat on the day.
Generated Image: Midjourney