Memecoins and Another Crypto Subsector Offering the Best Plays This Market Cycle, According to Top Trader

A closely followed trader says memecoins and an additional crypto subsector are likely to outperform the rest during this market cycle.

Pseudonymous analyst The Flow Horse tells his 204,000 followers on the social media platform X that traders who made big gains on memecoins will likely rotate their capital to other crypto assets and trigger another round of altcoin rallies.

Other than meme crypto assets, the top analyst is also bullish on altcoins that belong to the artificial intelligence (AI) subsector.

While The Flow Horse sees big potential for AI and memecoins, he warns that the crypto markets are starting to flash signals of being overheated. The trader is looking at altcoin funding, which tracks the fees paid by crypto traders who hold futures or margin positions.

According to the crypto strategist, altcoin funding is hovering at an elevated level, suggesting that a correction to flush out overleveraged traders may be in the cards.

Source: The Flow Horse/X