Zinger Key Points
- Trader sees Dogwifhat as the best active trade, citing its market leadership, liquidity and price discovery.
- Dogwifhat's uptrend has made it a top 40 crypto, but its 11.5% 24-hour dip alongside the market correction raises questions about the trend.
- Get Monthly Picks of Market's Fastest Movers
Pseudonymous cryptocurrency trader Altcoin Sherpa sees Dogwifhat WIF/USD as “the best active trade right now,” despite a dip in cryptocurrency prices.
What Happened: The heavily-followed trader published his analysis on X, listing pros and cons for trading the popular meme coin. As reasons that lead him to believe it is the best active trade, Altcoin Sherpa listed:
- WIF is the “market leader right now in terms of volume.”
- It is the leading Solana SOL/USD meme.
- It has great liquidity, allowing trader to get in “with size.”
- It is in price discovery.
But the trader also lists the following cons:
- Nobody knows when the current uptrend ends.
- Meme coin trading is “like hot potato,” where the capital can rotate to other coins.
- The unit bias might become a problem.
- The risk-to-return is not as good for new investors.
His conclusion is to “continue to buy dips until it doesn’t work anymore” but Altcoin Sherpa would “personally” not buy it “with size” for the long term.
Read Also: ‘Pharma Bro’ Martin Shkreli Predicts 75% Chance Of $1M Bitcoin By The End Of 2024
Why It Matters: Dogwifhat’s uptrend has catapulted it into the top 40 cryptocurrencies, with a preliminary all-time high of $4.79 on March 31.
It is up 129% over the past month, far outperforming the 19% gain of Shiba Inu SHIB/USD over the same timeframe. However, Shiba Inu’s market cap of $15 billion dwarfs the $3.8 billion of its rival.
Yet, over the past 24 hours, Dogwifhat has corrected alongside the entire cryptocurrency market and is down 11.5% at the time of writing. Whether that means the end of the trader’s identified uptrend remains to be seen.
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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