- WIF now trades at a new all-time high.
- However, volatility markers confirmed the possibility of a significant swing in the token’s value.
Dogwifhat [WIF] has rallied to a new all-time high driven by the market’s interest in memecoins.
WIF prices rose by 54% over the last 24 hours to become the fourth largest memecoin at press time. According to coinmarketcap, WIF now holds a market cap of $3.3 billion and was inching close to PEPE’s market cap.
Interestingly, the news follows a substantial purchase by a whale, on-chain sleuth Lookonchain noted in a recent post on X (formerly Twitter).
According to Lookonchain, during the intraday trading session on 13th March, the whale spent $1.26 million to buy 540,837 WIF in a single transaction.
The same investor had withdrawn $2.02 million worth of SOL from Kraken on 12th March, which was then used to acquire 921,272 WIF at an average price of $2.19.
At press time, WIF traded at $3.24. After logging a 43% surge in the last 24 hours, the dog-themed meme coin ranked as the crypto asset with the most gains during that period, per CoinMarketCap’s data.
Look out for swings
The double-digit spike in WIF’s price in the past 24 hours came with a corresponding surge in market volatility. By assessing the token’s price movements on a daily chart, AMBCrypto found a wide gap between the upper and lower bands of its Bollinger Bands (BB) indicator.
A wide gap between these bands typically signifies increased volatility in the price of the underlying asset. Traders often interpret it to mean that an asset’s price will experience severe fluctuations depending on general market sentiment.
An assessment of WIF’s Average True Range (ATR) confirmed the possibility of a swing in its price in either direction. This indicator measures market volatility by calculating the average range between high and low prices over a specified number of periods.
When it rises, it signals an uptick in market volatility. At press time, WIF’s ATR was 0.38, having risen by 5% in the last 24 hours.
How much are 1,10,100 WIFs worth today?
Regarding WIF’s next price direction, a look at a key momentum indicator revealed that a drawback might be imminent. Its Relative Strength Index (RSI) was 88.80.
An RSI of this value suggested that the meme coin might be overbought. At this high, buyers often experience exhaustion, leading to an almost inevitable decline.
Source: TradingView
