The cryptocurrency market has been experiencing an interesting trend lately, particularly in the memecoin sector. Data from Santiment, a leading market analysis platform, has indicated that larger wallets in the memecoin industry are strategically triggering mini breakouts across multiple memecoins. This deliberate move by memecoin whales aims to prepare the market for profit-taking and attract retail investors by inducing Fear Of Missing Out (FOMO).
Santiment’s recent post highlighted the influence of larger wallet holders on memecoins such as Dogecoin (DOGE), Pepe (PEPE), Dogwifhat (WIF), and Bonk (BONK). By orchestrating mini breakouts in these memecoins, the whales are setting the stage for a potential surge in market caps and subsequent retail FOMO. Once the retail crowd catches wind of the momentum and becomes greedy, the larger wallet holders are likely to sell off their holdings, leading to a market retracement.
Among the memecoins, DOGE has been a standout performer, maintaining a bullish momentum since the November 5 crypto market breakout. With a remarkable 241% gain in the current rally, DOGE’s price has surpassed $0.48 for the first time since 2021, trading at $0.4694 at the time of writing. Similarly, PEPE has seen a 243% increase since November 5, reaching a new all-time high after a 32% surge over the weekend. Despite the potential retracement predicted by Santiment, PEPE continues to exhibit strong momentum, hinting at higher price targets.
While WIF experienced a 158% surge post-November 5, the memecoin faced significant retracement before resuming its upward trajectory. On the other hand, BONK saw a dip following a 243% rally but has since regained momentum, currently trading at $0.00004697.
The memecoin market’s dynamics, influenced by whales’ activity and retail FOMO, underscore the volatile nature of the cryptocurrency space. Investors are advised to exercise caution and conduct thorough research before making any investment decisions. As the memecoin sector continues to evolve, staying informed and vigilant is crucial to navigating the market effectively.