Exploring the Recent Resurgence of Meme Coins in the Crypto Market π
The meme coin industry, spearheaded by the prominent Solana-based project dogwifhat (WIF), has seen a remarkable rebound of over 7 percent in the last 24 hours, reaching approximately $51.6 billion. This resurgence can be attributed to Bitcoin’s climb back up to around $62k, which has alleviated the bearish sentiment that was prevalent due to increased selling pressure.
Top WIF Whale on a Buying Spree π³
- Unlike holders of Ethereum-based tokens like Shiba Inu (SHIB) and Pepe (PEPE) who have been selling off their holdings on various exchanges, the top holder of dogwifhat has been actively buying more WIF tokens.
- On-chain data from Solscan revealed that the largest dogwifhat holder acquired 2.3 million WIF, valued at $4.65 million, earlier this week, boosting their total holdings to approximately 23.39 million units, worth around $49.6 million.
- Although the top WIF holder’s bullish activities have been driving the momentum, there is a potential risk of bearish implications if they decide to start selling their holdings. Additionally, WIF boasts a total liquidity of approximately $4.5 million across various web3 protocols.
Market Outlook and Midterm Price Action π
Following its impressive performance in the initial stages, WIF has recently been trapped in a phase of consolidation and market turbulence for the past few months.
- This mid-cap altcoin, with a fully diluted valuation of about $2 billion and a daily average trading volume of roughly $835 million, has witnessed a decline of over 32 percent in the last four weeks, trading at around $2.02 as of Wednesday.
- From a technical perspective, the WIF price against the US dollar has not yet completed the consolidation phase and is anticipated to persist in the coming months.
- Nevertheless, the daily Relative Strength Index (RSI) has entered the oversold territory, indicating an imminent market reversal on the horizon.
Hot Take: The Future of Meme Coins in the Crypto Market π
The crypto world remains fascinated by the unpredictable nature of meme coins, with recent developments in the market shedding light on the resilience and volatility of these assets. While meme coins have garnered attention for their speculative fervor and meme-driven communities, they continue to face challenges and uncertainties as the crypto space evolves.
By
By
By
By
