The cryptocurrency market, specifically the meme coin sector, has witnessed a significant rebound driven by dogwifhat (WIF), a leading project in the Solana ecosystem. This surge, exceeding 7%, has pushed the market capitalization to approximately $51.6 billion within the last 24 hours. The recent recovery in Bitcoin's price to around $62,000 has alleviated the prevailing bearish sentiment that was fueled by increased selling pressure. Despite these positive indicators, the market has not fully signaled a complete recovery as long-term holders continue to divest their assets. Notably, actions such as the selling of Bitcoin holdings by the German government and miners have exerted pressure on the bullish sentiment.
The latest trend in the market involves the top WIF holder engaging in substantial buying activities. Unlike holders of Ethereum-based tokens like Shiba Inu (SHIB) and Pepe (PEPE) who are offloading their assets on various exchanges such as Binance, the on-chain data reveals a different scenario for WIF.
According to data sourced from Solscan, the largest holder of dogwifhat recently purchased 2.3 million WIF tokens, equivalent to $4.65 million. This acquisition has significantly boosted the holder's portfolio, now totaling approximately 23.39 million WIF tokens valued at around $49.6 million. The ongoing bullish momentum maintained by the top WIF holder raises concerns regarding potential bearish implications should the whale decide to sell. Additionally, WIF boasts a total liquidity of about $4.5 million across various web3 protocols.
In terms of market outlook and price action in the midterm, WIF, after a stellar performance, has entered a period of consolidation and market fluctuations in recent months. An average capitalized altcoin, with an absolute capitalization of about $2 billion and a daily trading volume averaging around $835 million, has experienced a decline of over 32% in the last four weeks, trading at approximately $2.02 as of Wednesday.
From a technical perspective, the WIF price against the US dollar indicates ongoing consolidation, suggesting potential continued fluctuations in the upcoming months. Nevertheless, the daily Relative Strength Index (RSI) shows signs of oversold conditions, hinting at an imminent market reversal.
