Will dogwifhat Outperform Top Meme Coins DOGE, SHIB In May?

The meme cryptocurrency has been a distinguished sector of the crypto space as the assets under it are known to provide rapid movement in a short period. Such a high-momentum rally often attracts speculators, day traders, and short-term investors to keep these assets liquid. However, with leading Dogecoin and Shiba Inu showcasing a more stable price behavior recently, emerging coins like Dogwifhat can offer the traditional behavior of meme coins and provide higher returns to buyers.

Also Read: VanEck’s Meme Coin Index Hits 195% As DOGE, SHIB, & PEPE Prices Rally

Are Meme Coins Still Worth The Hype?

Crypto analyst Crypto Coryo notes a notable shift in the top meme coin market since the 2020/2021 bull run. Initially, options like DOGE, SHIB, and FLOKI were limited and mostly on Ethereum, leading to parabolic price increases due to high demand and low supply. However, by 2024, the number of meme coins exploded, with 138 new entries on CoinMarketCap in a single month, compared to 18 the previous year. 

This represents only a fraction of the total, as less than 10% of tokens are captured by CoinMarketCap. With Ethereum’s high transaction fees driving some activity to other blockchains like Solana, the current market is flooded with options. 

🔸Some thoughts on the memecoin narrative

In 20/21 bull, if you were into memes, your options were limited, DOGE, SHIB, FLOKI and maybe few others, most of which were on Ethereum. And most did extremely well.
Enormous inflow of retail/liquidity + few memecoin options =… pic.twitter.com/OKk6HySAkI

— Crypto Koryo (@CryptoKoryo) May 5, 2024

Crypto Coryo advises that given the high probability of most new meme coins eventually becoming worthless, investors should consider extensive diversification if they plan to engage in this highly speculative segment.

Also Read: Top 3 Price Prediction As Crypto Liquidations Swell To $135M, BTC, ETH, SOL Nosedive?

Is Dogwifhat Price Heading to $6?

Amid the current correction in the crypto market, the Dogwifhat coin shows a notable resilience above the $2.26 support. The coin price rebounded thrice from this support within a month indicating the local bottom formation and active accumulation from buyers at dips.

Despite strong support, the WIF price is having difficulty breaking past the $3.57 resistance level, leading to a range-bound pattern. With the overhead resistance intact, the meme coin has fallen 18% in the last four days to currently trading at $2.95. 

A breakout above this resistance could set a directional trend for WIF coins. For buyers to take control, they need to overcome the $3.57 resistance. Breaking this barrier could potentially accelerate buying momentum, pushing the price toward $4.85 and possibly extending it to $6.

In a recent analysis by Paris-based cryptocurrency data tracker Kaiko, meme tokens Dogwifhat and Pepecoin have emerged as leaders in leverage among altcoins. The data highlights that these tokens exhibit the highest Open Interest to Market Cap Ratios, indicating a notable level of leveraged trading relative to their market sizes. 

Meme tokens lead in leverage among top altcoins pic.twitter.com/Cddh1IR8NP

— Kaiko (@KaikoData) May 8, 2024

This trend may point to the growing popularity and speculative interest surrounding meme tokens, despite their often volatile nature.

Technical Indicator

• BB Indicator: The narrow range of Bollinger Band accentuates the highlighted volatility in this asset and the need for a better signal before committing to a particular direction.
• Moving Average Convergence Divergence: The MACD(blue) and sign (orange) slope wavering sideways around the midline higher neutral sentiment among market participants, signaling the potential for a prolonged sideways trend.