The week so far has seen a significant uptick in the meme coin market. The values of some of these “joke coins” have outperformed some major cryptocurrencies in the past few days. For example, on Tuesday alone, the meme coin sector saw a 12% surge, outperforming Bitcoin (BTC), Ethereum (ETH) and other leading assets.
Dogwifhat (WIF), Pepe (PEPE), and Floki (FLOKI) are some of the top meme assets that have recorded the most gains in the past week.
Dogwifhat (WIF) Leads, Others Follow
The price of the Solana-based dog-themed meme coin Dogwifhat (WIF) has risen by 54% in the past week. It ranks as the asset with the most gains among the top five meme assets by market capitalization.
An assessment of its price movements on a daily chart hints at the possibility of an extended rally. As of this writing, its Awesome Oscillator posts green histogram bars.
This indicator measures an asset’s price momentum. Green bars indicate a bullish signal. It suggests that the market’s short-term momentum is stronger than the longer-term momentum, indicating that buying pressure is increasing.
Further, WIF’s Elder-Ray Index’s positive value—0.76 at press time—confirms its bullish bias toward the meme coin.
This indicator measures the relationship between the strength of buyers and sellers in the market. When its value is positive, it suggests that bulls are in control and that there’s buying strength in the market.
If the buying trend is maintained, WIF will trade above $2.70.
Read More: How To Buy Dogwifhat (WIF) and Everything Else To Know
However, if the meme coin begins to shed its recent gains, its price may drop to $2.28.
Pepe (PEPE) Puts Holders in Profit
The price of the frog-themed token Pepe (PEPE) has increased by over 35% in the past week. As of this writing, the meme coin trades at $0.000011.
Due to its rise in value in the past week, many of PEPE’s traders have realized gains on their transactions. Its ratio of daily on-chain transaction volume in profit to loss, assessed using a seven-day moving average, showed that there had been more profitable transactions than losses in the past week.
This metric measures the volume of profitable transactions to those in loss. As of this writing, PEPE’s ratio is 1.54. This means that for every unit of transaction volume in loss, there are 1.54 units of transaction volume in profit. This indicates a positive market sentiment, as more transactions are being executed at a profit than a loss.
If PEPE maintains its uptrend, its price may touch $0.000012.
Read More: 5 Best Pepe (PEPE) Wallets for Beginners and Experienced Users
However, if profit-taking activity begins to put downward pressure on the meme coin’s price, it may fall below $0.00001.
Floki (FLOKI) Sees Increased Open Interest
The uptick in Floki’s (FLOKI) value in the past week has led to a surge in activity in its derivatives market. This can be gleaned from its rising futures open interest, which was $19.20 million at press time and has gone up by 58% in the past seven days.
An asset’s futures open interest refers to the total number of futures contracts that have not been settled. When it increases, more traders are entering the market and opening new positions.
When an asset’s price rises alongside its open interest, it suggests that new money is entering the market. Traders are opening new positions, and this increased participation often indicates strong confidence in a continued uptrend.
If this holds true for FLOKI, its price will rally to $0.00020.
Read More: 7 Hot Meme Coins and Altcoins that are Trending in 2024
However, if a decline ensues, the meme coin’s value may drop to as low as $0.00012.
Disclaimer
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