Dogwifhat (WIF), a cryptocurrency meme token, has recently achieved its highest price ever, soaring by 54% in just 24 hours. This surge has elevated WIF to the status of the fourth-largest meme token by market capitalization. With a market value now standing at $3.3 billion, WIF is hot on the heels of its competitor PEPE in market value.
Whale Activity Spurs WIF Valuation
Cryptocurrency insight providers Lookonchain attributed the sharp rise in WIF’s value to a massive purchase by a single investor. This so-called ‘whale’ reportedly acquired 540,837 WIF in a transaction worth $1.26 million. Prior to this, the same investor converted a substantial amount of SOL to fund the purchase of 921,272 WIF at an average price of $2.19 each. WIF’s price has since climbed to $3.24, registering a 43% gain in a day and earning the title of the top-performing cryptocurrency in that timeframe, according to CoinMarketCap.
WIF’s price rally coincides with an overall market upturn, with volatility indicators such as the Bollinger Bands showing a considerable widening, a sign of heightened volatility. Market experts suggest that the gap between the Bollinger Bands reflects the potential for erratic price movements influenced by general market moods.
Insights from WIF’s On-Chain Metrics
The Average True Range (ATR) metric, which gauges market turbulence, has seen an upswing, reflecting a potential for price swings in either direction. The ATR has increased by 5% in the last day, reaching 0.38. Moreover, the Relative Strength Index (RSI) stands at a high 88.80, suggesting WIF may be overbought. Such a high RSI often precedes a downturn, as purchasing momentum typically wanes after steep ascents.