Journalist
Posted:
- The lagging tokens do not always catch up with the strongest performers.
- Conviction could pay dividends later in the cycle- WIF breaking $4 can rekindle bullish fervor.
Pepe [PEPE] and dogwifhat [WIF] are the third and fourth-biggest memecoins by market capitalization, respectively.
PEPE has $10.2 billion while WIF is much smaller at $2.8 billion, which generally means that WIF has much more room to run.
Yet, PEPE has been the one outperforming the hatted dog meme, even though both of them are already listed on the biggest exchanges and have a reasonably strong community.
With Bitcoin [BTC] struggling to climb past $100k, the meme coin market has taken a hit. Yet, one of the two have performed more poorly. Is WIF on course for a sub-par performance in the coming weeks?
PEPE has far stronger bullish conviction
Source: PEPE/USDT on TradingView
After the rally in April and May, PEPE retraced to the 78.6% level. In the past two months, it has burst past the previous highs and pushed beyond the 61.8% extension level.
It is on course to reach the 100% and 200% extension levels at $0.00003 and $0.0000438 in the coming months.
After surpassing the $10 billion market cap, its holders have grown stronger in their conviction. This is reflected by the rising OBV trend of the past few weeks.
The RSI was also in overbought territory but does not promise an immediate pullback.
WIF struggles to break out past the consolidation
Source: WIF/USDT on TradingView
Meanwhile, WIF also retraced to the 78.6% level and bounced higher in recent weeks. However, its approach of its all-time high at $4.87 was met with a brutal rejection in mid-November.
Despite the setback, both the OBV and RSI continued to trend higher.
The optimistic view is that WIF has a lot of catching up to do, and will make more gains than PEPE, in the latter part of the Bitcoin [BTC] bull run.
Alternatively, the lack of strength that dogwifhat exhibited is also a sign of a lack of conviction.
Read Pepe’s [PEPE] Price Prediction 2024-25
As things stand, it appeared likely that WIF would struggle to match PEPE’s gains in the coming weeks. A move beyond $4 would be the first step to change this.
Selling dogwifhat might appear logical, but during bull runs, conviction in a token can be rewarded. When some assets decide to run, they can make up months and years of losses in a few short weeks.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
