As a seasoned crypto investor with a few battles scars under my belt, I’ve learned to keep a level head during market volatility. However, today’s news about Dogwifhat (WIF) taking a 12% hit in price is hard to ignore. The meme coin hype that had driven its price upwards seemed to have come to an abrupt end, with the correction in GameStop (GME) stock prices being the likely culprit.
The cryptocurrency represented by the Dogewhiz meme token, which had experienced significant growth recently, has begun to decline. The decrease in WIF’s price by over 12% today can be attributed to the waning hype surrounding meme coins following the correction in GameStop (GME) stock prices.
In the top 100 cryptocurrencies ranked by market capitalization, meme coins like WIF, BOME, PEPE, and FLOKI were responsible for the significant drop in the crypto market. This finding underscores the fact that these meme coins played a major role in the downturn.
WIF Price Plunges 12%
In the past 24 hours, the WIF price has dropped by 12%, now sitting at a price point of $2.58 during this update. The lowest and highest prices recorded within this timeframe were $2.53 and $2.89, respectively.
Whales and traders are cashing in on their profits by selling off their holdings in Dogecoin (or “dogwifhat” as mentioned) as the prices of GameStop and AMC Theatres took a downturn following a frenzy of buying excitement. GameStop’s stock price experienced a remarkable surge last week, reaching a new 52-week high of $64.83, but subsequently plummeted more than 20% today.
A large investor in WIF, resembling a whale in the sea, disposed of 732,481 WIF tokens, equivalent to $1.85 million. This investor had originally spent $2.18 million to acquire these WIF holdings but ultimately chose to sell at a loss. Similar behavior has been observed among other substantial WIF investors.
At the same time, merchants are disposing of their holdings in WIF because it has yet to hit short-term targets, and technical indicators suggest significant selling may ensue in the dog-friendly cryptocurrency.
Experts in crypto analysis identify $2.5 as a significant level of support for WIF. Should this support be breached, the price is expected to decline further towards approximately $1.6.
Is Meme Coin Mania Over?
As a researcher studying meme coins and their market trends, I’ve observed an intriguing connection between the recent hype surrounding these digital assets and the events unfolding at GameStop (GME). When the GME stock price began to plummet, so too did the values of popular meme coins such as BOME, PEPE, and FLOKI. The cause-and-effect relationship between these two phenomena is not yet fully understood, but it’s clear that the volatility in the stock market can have a ripple effect on the cryptocurrency world.
As a derivatives market analyst, I’ve observed an intriguing development regarding WIF: despite this, derivatives traders have yet to initiate selling positions. Interestingly enough, the open interest for WIF exchange futures has seen a significant surge of nearly 5% in just the past day. This heightened confidence among traders could potentially influence market dynamics in the coming week. If WIF fails to hold onto its crucial support levels, however, it’s likely that traders will seize the opportunity to instigate a sell-off next week.
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2024-05-18 20:56