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Cryptocurrency News Articles
dogwifhat [WIF] Achieves a Significant Milestone, May Emerge as a Frontrunner in the Memecoin Supercycle
Oct 12, 2024 at 02:00 am
With an impressive jump of over 10% in just 24 hours, dogwifhat [WIF] has claimed the top-gainer spot, leaving over 100 major cryptocurrencies in its dust.
dogwifhat [WIF] led the top gainers list on 11 October with a gain of over 10% in 24 hours. Among the top 100 cryptocurrencies, WIF was trading at $2.51, at press time. Having closed October at around $2.30, the coin bounced back from a rocky start.
However, to reach a parabolic rally of $3, it is important to turn its current resistance into support. At the moment, the strong RSI favored this possibility. Especially since it suggested that buying strength had not yet run out. But, will other conditions align as well?
A crucial milestone for WIF
Despite the inherent risks, a select few memecoins have managed to garner a strong base of holders over the years. This shift highlighted how investors were increasingly drawn to volatile tokens for quick, outsized returns.
With 186,393 holders, WIF exemplified this trend. Only 8.2% of its tokens were held by its top 10 holders.
A more concentrated token could lead to coordinated selling pressure, but WIF’s increasing decentralization reduced the chances of a sudden price swing. This dynamic became even more crucial as the market anticipated a memecoin supercycle by the end of Q4.
A strong parabolic rally usually required less buy-sell imbalance, which might have helped WIF lead the front. Thus, a more substantial surge in WIF’s value could indicate confidence among stakeholders. However, it did not shield WIF from bearish pullbacks. But, it did reduce the potential for extreme volatility significantly.
A critical road ahead for the memecoin
As WIF approached its previous rejection level at $2.59, it had largely made up for the gains lost during its retracement to the $2.30 level. This meant that the majority of its holders were now in a net profit position.
While this signaled bullish momentum, WIF could still see a short-term price correction as traders might cash-in on their gains. However, if selling pressure was countered and traders recognized $2.30 as a strong support level, this trend could be reversed. It would be ideal for dip-buying.
The bulls needed to maintain the $2.50 price point strongly as a crucial bearish MACD crossover was on the horizon. Historically, such crossovers were strong in identifying potential market tops.
If this pattern held, the next price correction could push WIF back below the $2.30 price point. Additionally, with selling pressure increasing after last week’s surge placed WIF as the fifth top gainer, short positions might take over.
If this trend continued, a parabolic rally to $3 might need another cycle to materialize. Especially since forced closures of long positions could lead to a steep decline in WIF’s price.
Thus, WIF needed an intervention to absorb this pressure and establish $2.30 as a support level or a retracement seemed more likely.
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