This OG memecoin is set to print higher highs

Hypothesis

Most utility coins from the previous bull markets have struggled this cycle. Some of them showed promise when the current cycle kicked off in October 2023. However, they've mostly given back most of their gains as newer narratives, shiny new assets, and a meme frenzy have captured the market's attention.

We spotted the charts of an OG memecoin and there's a strong indication that this coin might offer some massive gains in the short term.

Let's dive in.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. We also advise setting a risk tolerance level in terms of capital allocation while trading. The industry standard is no more than 2% of your portfolio at any given time. This means if you are in an open position already, it's advised not to take on more trades, which will lead you to be overexposed. Allow current trades to be settled; there will be more opportunities around the corner.

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The chart below illustrates how the OG memecoin, DOGE, is outperforming the rest of the market, based on a key inflection point printed in late March and early April.

DOGE has reclaimed its inflection point this cycle and is trading just below it currently.

In contrast, the total market cap, excluding BTC and ETH (Total 3), has yet even to test this point. The big caps like BTC, ETH, and SOL have reclaimed their inflection points now, but the rest of the market hasn't, except for DOGE.

What does this tell us about the strength of memes and where we should focus our attention?

Technical analysis

The first chart displays how we will take advantage of this in scenario 1.

The market is displaying strong daily strength in and around  $0.15500, which is our LOI (Level of Interest) for execution. It's a historically strong level, and in the context of this cycle, we can see there is clearly a lot of demand in and around this price point.

If further upside is imminent over the next ten days, this, from a probabilistic standpoint, is the strong level to look to capitalise from.

The trade stops are relatively wide to allow for a retracement to the key level below if that were to play out. The second chart displays spot bid levels you can use as DCA zones to accumulate if and when price is using these levels as support if you want to hold this for the long haul.

Play for traders

• Scenario 1: Consider placing a limit order at our LOI of $0.15500

Risk and reward

If you are going to apply leverage, we would always advise using a stop loss to protect capital and stay calculated with our risk-to-reward strategy.

The technicals would render this particular setup invalid based on the conviction at the price seen below. 

• Stop loss - $0.13130

Take profit The overall conviction is that DOGE will set the standard for continued upside on the risk side of the curve.

However, for trading with a mid-to short-term swing approach, we are taking profit at the below level to maintain our attractive risk-to-reward standpoint.

• TP 1: $0.22000

Cryptonary's take

As we approach the middle of the year and anticipate things heating up in crypto, we are being very particular in identifying where the rest of the market will most likely bid based on the assets' performance so far. Shiny new memecoins like WIF and POPCAT have been the stars of this cycle, but it appears that the OG memecoins are still alive and kicking.