Dogwifhat WIF/USD saw its valuation rise to $4 billion after its price rallied 20% in the past week. At least one trader voiced an optimistic outlook for the token.
What Happened: Lookonchain data highlights smart money that spent 10,000 SOL tokens, worth $1.91 million, to purchase 776,830 WIF tokens, worth $3.18 million, on March 20. The trader currently stands at an unrealized profit of $1.27 million.
A crypto enthusiast and veteran, in his latest tweet, highlighted the strength of Dogwifhat relative to Bitcoin compared to the rest of the market.
He added: "It’s very likely that $WIF blows past $5 when $BTC blows past $70K on the next leg up."
Unknown Trader proposed a trade idea for WIF:
Also Read: Dogwifhat Shorts Liquidations Soar Amid Price Surge, Diverge From Dogecoin’s Trajectory
Why It Matters: Coinglass data shows $1.94 million worth of liquidations for Dogwifhat, with long liquidations accounting for $1.34 million. This points to investors’ expectations of a bullish momentum.
With monthly gains at 116%, Dogwifhat's valuation was already within touching distance of the $5 mark before a recent correction.
Its monthly gains dwarfs the 24% monthly loss of the next-biggest dog-themed coin Shiba Inu SHIB/USD. Shiba Inu still enjoys a comfortable $12 billion market cap advantage. But the gap between the two coins has been closing faster than anyone could have predicted at the start of 2024.
These meme coins do not have any real-world utilities or a pathway to expand adaptability. However, their price movements are highly correlated with broader cryptocurrency prices.
What’s Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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