Dogwifhat (WIF), the underdog memecoin, is making headlines as it defied market volatility, holding the crucial $2 support line. Over the past 24 hours, WIF surged by 4%, a bullish move that caught attention as Bitcoin continues to consolidate below $64K, keeping the broader market in suspense. Meanwhile, POPCAT, another popular memecoin, is closing in on WIF’s lead after briefly reaching a $1 billion market cap, only to retrace to $968 million as bulls struggled to defend the $1 level.
WIF and POPCAT Battle For Memecoin Dominance
In the ongoing battle between memecoins, WIF has demonstrated resilience, especially after a rough market patch that persisted through late August. WIF rebounded in mid-September, surging 45% to reach $2.15 on the daily timeframe. This marked a significant turnaround for the coin, which had been struggling to find bullish momentum.
On the other hand, POPCAT closely mirrored Bitcoin’s price action during early September, skyrocketing 102% to $1.0194 at the time of writing. What’s notable is POPCAT’s ability to perform well despite broader market downturns, even hitting a new all-time high (ATH) of $1.0768 on September 25. However, the coin now sits at a crucial support line, and failure to hold this level could lead to a steep decline, potentially pushing POPCAT to as low as $0.38. If bulls manage to push POPCAT higher, another ATH could be on the horizon.
WIF’s Strategic Surge and Potential Risks
WIF’s recent 20% surge over the last three days has been largely attributed to spot traders aggressively accumulating the coin. This accumulation has squeezed out short positions, giving WIF bulls a tactical advantage. However, this bullish momentum comes with a catch. If these spot traders begin to distribute their holdings, the coin could face a sharp correction.
WIF’s net outflows from exchanges have surged to $30 million since it hit a market bottom of $1.26 in early August. This created a prime buy-the-dip opportunity, leading to the recent surge in price. However, with WIF now hovering around $2.16, early investors are seeing significant profits, raising concerns that the memecoin could face exhaustion. A renewed spike in net inflows, reaching a three-month high of $15 million, suggests that WIF may be at risk of a reversal.
POPCAT’s Path Forward
AMBCrypto’s analysis shows that liquidity may be shifting from WIF to POPCAT. The two coins have largely followed similar price trajectories, except for early September when POPCAT outperformed WIF, signaling increasing interest in the coin. WIF’s trading volume has halved since August, peaking at $1 billion, while POPCAT’s volume surged from $104 million to $127 million in just one day.
Also Read: Dogwifhat (WIF) Nears Breakout – Up 10.59% In 24 Hours, Can It Surpass $2?
POPCAT’s $1 support level will be critical in determining its next move. If bulls can hold this level, while closely monitoring WIF’s activity, POPCAT could close the gap and possibly overtake WIF in the memecoin race.
A Memecoin Showdown
The battle between WIF and POPCAT is far from over, with both coins showing signs of potential breakouts. While WIF has managed to hold its ground for now, its increasing net inflows and declining trading volume suggest a challenging road ahead. POPCAT, on the other hand, is eyeing WIF’s lead, with bulls needing to hold the $1 support line to push for a new ATH. As “Uptober” approaches and Bitcoin’s bull run looms, the memecoin space is bracing for a major shift, with WIF and POPCAT leading the charge.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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