WIF’s battle with mid-caps: Here’s what the memecoin needs to breach $4

WIF, at the time of writing, was caught in a ‘tug-of-war’ with its price movement hinging on a few key factors
A breakout can happen if certain conditions are met

As a seasoned analyst with over two decades of experience in the ever-evolving world of cryptocurrencies, I’ve seen my fair share of market fluctuations and trends. The current state of WIF (dogwifhat) is indeed intriguing, to say the least.

In contrast to the top-performing altcoins on the market, memecoins have experienced relatively smaller growth over the past month. Among these, Dogecoin [DOGE] has shown a significant increase of approximately 130%.

Yet, Dogwifhat [WIF] has fallen short of expectations, especially when benchmarked against its Solana-counterparts, with a few showing remarkable returns reaching four-digit figures.

Even so, it’s possible that WIF hasn’t yet proven itself to be among the largest underperformers. At present, there seems to be an intense struggle or battle between high-value and medium-value tokens, each vying for investment capital that was previously tied up in Bitcoin.

With WIF being the fourth-largest meme coin categorized as high-capitalization, it could potentially surge beyond current boundaries following a fortnight of stability. The target price of $4 is becoming increasingly visible on the horizon.

If it reaches this point again, there’s a chance FOMO might kick in, possibly leading WIF to establish a new record peak – but this is contingent on investors resisting the attraction of mid-cap investments.

WIF needs the loyalty of big players

On November 15th, the price of WIF increased by more than 4% within a single day, forming a large green candle on the chart, and almost reaching its highest point during the March bull run at around $4.85.

This stage appears to offer significant challenges. Overcoming these obstacles might enable WIF to reach a fresh record high, possibly exceeding $5 before the end of Q4.

The optimistic outlook was also reflected in the price graph, as WIF had been gathering strength within the $3 to $4 range. This situation presents a promising prospect for investors eagerly waiting for a surge. Notably, with the Relative Strength Index (RSI) maintaining a neutral position, this could be an indicator of future growth potential.

Even though there’s still a chance for corrections, significant players seem to be transitioning into a distribution stage. This could be because they are securing profits from earlier market drops or they are hesitant about a potential recovery.

Delaying action on breaking the previous WIF price of $4 might prompt worries from investors, emphasizing the importance of keeping a close eye on their subsequent moves.

Low and mid-caps presents another obstacle

Analyzing the previous week’s token price movement is crucial to measure investor sentiment since it establishes a trend for December and marks the conclusion of the period known as “Trump-pump.” In simpler terms, looking at how tokens performed over the last seven days can help predict market trends in December and indicate that the impact of the “Trump-pump” has ended.

It’s worth noting that small- to moderately sized tokens were predominant in the list of the top 20 gainers, as only two high-value tokens from the top 30 even qualified for inclusion.

Source : CoinMarketCap

Although it didn’t trigger a pessimistic forecast for WIF, it did reveal a change in investors’ sentiment. This change suggests that many investors now favor the security offered by less popular tokens, as they tend to be less susceptible to drastic price swings compared to meme coins.

That being said, there’s still potential for WIF to break past $4. Especially with its market cap rising by over 9% to $3.62 billion. However, it still remains a highly speculative asset.

Read dogwifhat’s [WIF] Price Prediction 2024–2025

In light of the present market trends, where major competitors seem to be balancing their profits, it appears that the prospects for a comeback by WIF are rather slim. This is particularly true since WIF’s stability largely depends on these key players to establish a strong foundation.

If the pattern doesn’t change – with whales perceiving the current price range as an opportunity to buy and additional funds flowing into risky investments – it is probable that WIF may find it difficult to surpass $4, thereby hindering a rapid, unprecedented surge towards a fresh high.

2024-12-08 07:03

WIF needs the loyalty of big players

Low and mid-caps presents another obstacle

Read More