3 min read
While the broader cryptocurrency market has been relatively flat, meme coins have been on a tear, with Dogwifhat leading the pack. The most popular Solana memecoin reached a new all-time high earlier today.
Dogwifhat is a relatively new meme coin launched on the Solana ecosystem in November of last year. Despite being a newcomer, it has made a name for itself in the highly competitive meme coin space. Today, the coin started at $3.21, traded sideways until about 9am ET, then suddenly started to spike, reaching an ATH of $3.90 at around 4:30pm ET. It's trading at $3.81 as of writing.
Image: Tradingview
This marks Dogwifhat's best daily performance since its launch. It recently flipped relative veteran meme coin Pepe, rising to the 38th position in the Top 100 as Pepe settled in 43rd place with respective market caps of $3.8 billion to $3.37 billion, according to Coingecko.
If all conditions remain the same, in fact, there is still room for further upward movement.
Dogwifhat's Relative Strength Index (RSI)—an indicator that measures whether bulls or bears dominate the market— is currently at 69 points, suggesting that the coin is oversold. This means there is a risk that a major cohort of holders is waiting for the best time to realize their gains, which would trigger a correction in the price.
Beyond this, given the young nature of the coin—limiting the amount of past data—it is hard to make any price projections based on technical analysis.
It is also important to note that meme coins are extremely volatile and are known for their lack of fundamentals. The WIF vision, for example, is nothing else but "literally just a dog wif a hat". This makes them susceptible to drastic and unpredictable changes influenced by random events like tweets, unrelated news, and market movements of other coins. These tokens are driven more by market sentiment than anything else.
Image: Dogwifcoin.org
Other memecoins are also doing well today. Besides Dogwifhat, the four best-performing tokens in the overall crypto industry's Top 100 are meme coins: Dogecoin (+16.83%), Floki (+12.7%), and BONK (+10%). Beyond the top 10, PEPE is up 8.29% and is currently being traded at $0.000008293 per token, Shiba Inu is up +5.85% to $0.00003179, and 65 out of the 100 biggest meme coins are posting some gains in the last 24 hours.
Today has been a good day for meme coin traders overall—but these tokens also tend to crash fast. It's important to exercise caution when dealing with these assets due to their volatile nature, but chances are that you probably don't care if you're a HODLer.
Edited by Ryan Ozawa.
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