The Solana (SOL) network has significantly benefited from meme coin trading, with dogwifhat (WIF) as the largest by market cap and daily trading volume.
Amid the ongoing crypto bullish recovery led by Bitcoin (BTC), Solana (SOL)-based top meme coin dogwifhat (WIF) has signaled a potential bullish reversal. The mid-cap meme coin, with a fully diluted valuation of about $1.63 billion and a daily average traded volume of around $440 million, surged over 10 percent in the past seven days to trade around $1.63 on Friday, August 23, during the mid-London session.
However, dogwifhat price against the US dollar is now completely out of the woods, especially with August and September considered bearish months for the entire crypto market. After rallying more than 105,017 percent, between December last year and April 2024, WIF price has been trapped in a bearish trend since March.
In the daily time frame, the meme coin has been forming lower lows and lower highs, an established characteristic of a falling trend. Additionally, WIF price has remained below the 50-day Moving Average (MA)since the August 5 market crash, suggesting the bears are in control.
Possible Relief for dogwifhat Investors
The altcoin industry is on the cusp of experiencing a historical rally after bleeding to Bitcoin in the past year. Although Bitcoin dominance has continued to grow in the recent past, technical analysis shows an imminent reversal in the midterm.
Notably, Bitcoin’s dominance in the weekly time frame has been forming a rising wedge that is often followed by a sharp reversal. Moreover, its weekly Relative Strength Index (RSI) has been forming a bearish divergence, signaling inevitable crypto cash rotation to altcoins in the near term.
Bitcoin dominance on an ending diagonal is screaming one message that ' #Altseason ' is on the corner.
It's going to be massive in Q4! pic.twitter.com/bPUpXj2UFq
— Mikybull 🐂Crypto (@MikybullCrypto) August 23, 2024
Worth noting that the Solana ecosystem is bound to attract more users, especially after the approval of two spot SOL ETFs in Brazil in the recent past.
WIF Whales on the Hunt
The ongoing meme coin campaign in different blockchains – led by Tron (TRX) and BNB Chain, among others – has significantly influenced more speculative traders to tap into meme coins. Moreover, the meme coin industry has the potential to onboard more users into the web3 space at a faster rate than other crypto projects.
The largest holder of $WIF, with over $68M in profit, is buying more and going long on $WIF!
In the past 3 days, he deposited 21.9M $WIF($35.48M) into #Kamino and borrowed 3.24M $USDC, then spent 2.7M $USDC to buy ~1.8M $WIF!
This whale spent $226K to buy 19.86M $WIF at only… pic.twitter.com/4iXzJPlT8s
— Lookonchain (@lookonchain) August 23, 2024
According to on-chain data analysis provided by Lookonchain, the largest dogwifhat whale, with a total holding of about 27.2 million units, has accelerated the accumulation pace in the recent past. Remarkably, the whale investor currently has a profit of more than $68 million, from the early investments.
In the last three days, the whale investor deposited 21.9 million WIF tokens, worth more than $35 million, to top Solana’s lending platform Kamino, and borrowed 3.24 million units, which the investors used the majority to purchase more WIF units.
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