Memecoins explode higher led by Dog Wif Hat (WIF)

Memecoins explode higher led by Dog Wif Hat (WIF)

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Memecoins are the red-hot niche in the cryptoverse right now, so you can forget AI, DePIN, and decentralised computing. Memecoins are lifting the altcoin market, and these are led by the crowd favourite Dog Wif Hat (WIF).

Memecoins unleashed

Long looked down upon by bitcoin maxis and and even by many who back a lot of the altcoins, memecoins are having their time in the sun, and this has meant that fun and excitement has returned to crypto.

As many of the altcoins remained in the red over the last couple of days, memecoins have been unleashed once again, and the likes of Dog Wif Hat (WIF), Pepe (PEPE), Bonk (BONK) and Dogecoin (DOGE) et al., are forging higher at a rate of knots.

Taxi and Uber drivers are putting part of their earnings on cute dogs and sassy frogs between rides, and a huge percentage of the retail crowd are joining them in backing the memecoins, helping this niche to rise to wild valuations.

Retail to be forced out of crypto market?

Of course, this is likely to end in tears for many, as the vast majority of retail probably doesn’t have the slightest idea about trading. Many will follow the wave higher and will then be left holding the bags as they fail to take profits.

However, they will have been able to exercise their right to make the trades, just as they would be able to in a casino. That said, certain governments and their agencies will look to shut the retail crowd off from crypto eventually. If plans come to fruition, only accredited investors and high-worth individuals will be able to enter the crypto space - just as it is in traditional financial markets.

Authoritarian and totalitarian rules and edicts appear to be the only way for governments to prevent the average Joe from making gains in the crypto market. That said, not all exchanges are within their grasp just yet, and so may the fun continue.

Trade $WIF with caution

Source: Coingecko/Trading View

In the very short term time frame of the hourly, $WIF has just come down to confirm the bottom of the upward sloping channel. This is in fact a bearish chart pattern, and it wouldn’t be a surprise to see a break to the downside from here.

Source: Coingecko/Trading View

Zooming further out into the daily time frame, the longish wick above the current daily green candle may not bode well for continued upward price action. Also, the relative strength indicators (RSIs) are starting to show oversold conditions. That said, if retail buyers continue to bet heavy on $WIF the next target of around $3.60 could be reached.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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