The cryptocurrency market is currently upbeat, driven by the potential approval of a spot Ethereum ETF. Amid this positive vibe, meme coins like Dogwifhat (WIF) are also experiencing price fluctuations. WIF has seen a 20% drop since its peak of $3.6799 in May, but the Solana-based asset is showing signs of recovery. The critical question is whether WIF will see an upward trend again.
What Influences Solana-Based Meme Coins?
Solana-based meme coins have experienced a surge, with their market value rising over 5% in the past 24 hours to reach $8.75 billion. Whale movements, particularly involving WIF, significantly contributed to this increase. On May 22, Lookonchain detected whale accumulation in WIF just before a price rise to $3.28 on Binance. Optimism surrounding Ethereum ETF approval also positively affected Solana-based meme coins.
Why Did Whale Sales Affect WIF?
Investor and whale wallet activities have caused price drops in WIF. Whales who accumulated WIF on May 22 began taking profits on Thursday, with significant sales reducing the coin’s value. For instance, a whale sold 2.36 million WIF tokens for approximately 7.44 million USDC, causing the coin’s value to drop by 6%. Another investor sold 500,774 WIF for 1.47 million USDC, making a profit in multiple transactions.
Key Insights for Investors
Important points for investors to consider are:
- Monitor whale activities as they can significantly impact coin prices.
- Stay updated on broader market trends, such as ETF approvals, as they influence meme coin valuations.
- Analyze cryptocurrency metrics like MACD to gauge potential price movements.
WIF aims to recover to its previous highs, targeting $3.28 as seen on May 22. Although it hasn’t reached its all-time high of $3.6799 from May 6, breaking $3.28 is a promising trend. The MACD metric also supports the potential for a bullish rise, suggesting an approximate 9% gain. However, market volatility remains a concern, and a correction could pull WIF to a lower level of $2.42, as seen on May 19.