Memecoins’ Next Rally Depends on Users’ Sentiment – Opinion

• Cryptocurrencies are collectively under-allocated to memes.
• Memecoins are slowly gaining momentum.
• The memecoins rally for the next four months depends on users’ sentiments.

According to a massively followed crypto personality on X, cryptocurrencies are collectively under-allocated to memes. With approximately $50 billion in market capitalization, memecoins make up about 2.5% of the total crypto market share, and the crypto user thinks they are slowly gaining momentum.

Meanwhile, the identified crypto personality said digital asset traders targeting memecoins would make the best decisions by adopting certain trading philosophies. According to the opinion giver, three factors would enhance a profitable memecoins adventure in the next four months. He noted the factors as identifying memecoins with long accumulation periods, noting those with cult communities on X, and spotting memecoins easily relatable to “normies”.

Understandably, this argument would align with memecoins’ propensity for extended volatility and price movements that are hard to predict. Although many memecoins set up recognizable technical chart formations, it is common to find them trending contrary to the expected outcomes of those technical analyses. 

Therefore, adopting a prediction method based on users’ behavior and sentiments becomes an ideal way to gauge the sector’s performance and to identify the memecoins that are more likely to rise in demand. Hence, from the three indices highlighted by the memecoin market observer, crypto traders can deduce that the next phase of the sector’s price surge solely depends on users’ sentiment rather than technical analysis.

Although most crypto users consider memecoins digital assets designed for speculation and, without utility, their community members argue otherwise. For instance, the Dogecoin community says DOGE’s utility lies in its use case as a payment tool. However, the crypto community has a contrary opinion. There is no limit to the number of Dogecoins that can be created, making the cryptocurrency highly inflationary and complicated to use as a payment tool.

Despite the contradicting opinions, Dogecoin remains the leading memecoin, with a $16.26 billion market cap at the time of writing, followed by Shiba Inu, with a market capitalization of $10.43 billion.