Memecoins
3 Meme Coins to Sell in July Before They Crash
I can say with some conviction that the cryptocurrency bull market is likely to continue. Bitcoin (BTC-USD) appears to be in a consolidation zone. With the likelihood of rate cuts, I expect a further rally for Bitcoin and other cryptocurrencies. However, even in the greatest bull markets, there can be wealth destroyers. The goal of this column is to identify three meme coins to sell before they decline further.
It is worth noting that over the past 30 days, Bitcoin has been in a downtrend of about 7%. This is a small correction in a bull market. Over the same period, Beam (BEAM-USD) And Celestia (TIA-USD) have fallen by over 40%. I mentioned these two cryptocurrencies because they are in the top 100 by market cap. The bottom line is that there will continue to be wealth destroyers in a high beta crypto market.
So let’s talk about three meme pieces to sell before it’s too late.
PepeCoin (PEPE-USD)
Source: Chinnapong / Shutterstock
Dogecoin (DOGE-USD) And Shiba Inu (SHIB-USD) have survived several bearish phases for cryptocurrencies. Dogecoin continues to enjoy the support of Elon Musk, and Shiba has grown its ecosystem and utility. If I were to bet on meme coins, I would consider these two names rather than leaning on something relatively new.
PepeCoin (PEPE-USD) is ranked among the top 25 cryptocurrencies by market cap. A valuation of nearly $5 billion seems overblown, and I think PEPE is likely to trend lower from current levels. The meme cryptocurrency has corrected 23% in the past month, but that’s small compared to a 650% gain over the past 12 months.
I also think that the token economics of the PEPE coin are not attractive. A total supply of 420.69 trillion does not seem to be a concern at the moment. However, if there is a loss of confidence and few large investors exit, there could be a collapse. A recent report indicates that a whale in the cryptocurrency market has strategically transferred funds from PEPE to Ethereum (ETH-USD).
Bonk (BONK)
Source: Rebeca VS / Shutterstock.com
Bonk (BONK-USD) is another meme coin for sale. It is worth noting that BONK has skyrocketed by 6,500% in the last 12 months. With a market cap rank of 65, the meme coin appears to be expensive.
Therefore, the best part of the rally may be over, and I see high risk at current levels. My view is underlined by the fact that BONK’s price prediction for 2030 implies upside potential by 310% from current levels.
In terms of positives, BONK has 120+ integrations on 9 separate chains. The integration ecosystem has therefore been robust. In the gaming segment, BONK has 25 integrations and is an emerging currency in blockchain gaming.
These factors are not unique in the cryptocurrency world, however. The rise in BONK has been largely driven by euphoria. Once investors find cheaper alternatives, money will likely flow out of BONK.
The token economy doesn’t look appealing either. The current circulating supply is 66.3 trillion, with a total supply of 93.5 trillion. supply inflation is high, and if a few whales come out, there will probably be panic.
Floki (FLOKI-USD)
Source: Zie Project/ShutterStock.com
In terms of market capitalization, Floki (FLOKI-USD) is the fifth largest meme coin. Moreover, if we look at the top 10 meme coins, FLOKI has been the worst performer over a 30-day period. Of course, this is not the only reason to be bearish on FLOKI. However, I think the downtrend is likely to continue.
If we look at the price prediction, FLOKI has a 295% upside potential from current levels by 2030. Technical data seems to suggest that the best part of the rally is over for the meme coin.
THE risk of scams is another factor that has impacted sentiments. Recently, Floki issued a scam alert about fake tokens on the Solana (SOL-USD) and basic blockchains.
Another recent news item indicates that Floki investors are liquidating their holdings to buy Mpeppe (MPEPE-USD). Reasons include “the potential for higher yields, “Innovative betting features and solid market forecasts.” I would therefore remain cautious about further exposure to FLOKI. Furthermore, profits can be booked and a move to more solid projects can be considered.
As of the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the advice of InvestorPlace.com Publication guidelines.
As of the date of publication, the responsible editor did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Faisal Humayun is a Senior Research Analyst with 12 years of experience in credit research, equity research and financial modeling. Faisal has authored over 1,500 equity articles, focusing on the technology, energy and commodities sectors.