Solana-based meme cryptocurrency Dogwifhat (WIF) captured impressive gains Monday, surging nearly 50% to tag new local highs around $0.59. The remarkable move comes as the wider meme coin market awakens, with top tokens up over 13% amidst broad-based altcoin strength.
Having rocketed in value recently, Dogwifhat now spearheads the mounting meme coin rally as speculative interest returns. The fledgling WIF token managed to hurdle a crucial technical barrier this week that analysts believe opens the door to significantly more upside ahead.
More specifically, Dogwifhat rallied to close above the neckline of what appears to be a textbook cup and handle pattern on its 4-hour chart. This bullish formation often precedes strong momentum rallies post-breakout, targeting 25% or greater.
Sustaining above the $0.4771 level remains key to maintaining upside bias, and projected measured moves to $0.6915 next. But failure to hold that area risks demoralizing the positive setup.
Technicals show room for 25% further upside for dogwifhat
The powerful advance has already produced immense paper gains for some WIF investors. According to blockchain research firm Lookonchain, one trader sits on nearly $582,000 in profit after timing his entry around November judiciously.
With only 5.288 $SOL($310), this trader made ~$1.4M(4,530x)!
He spent 5.288 $SOL($310) to buy 2.58M $WIF on Nov 26, 2023.
Since the price of $WIF has increased by ~50% today, the value of 2.58M $WIF has increased to $1.4M!https://t.co/0SVofa1u4x pic.twitter.com/dPWABG2OmM
— Lookonchain (@lookonchain) February 27, 2024
And in an even wilder ride, another account turned a meager $310 investment into around $1.4 million as the meme coin exploded astronomically higher over recent quarters – highlighting the wealth creation potential in the space. Such stories continue to feed the craze for high-risk, high-reward meme token speculation.
The latest bout of euphoria correlates closely with the broader risk asset rally as equities and crypto recover. But reminders remain ever more prudent: massive upside potential comes fraught with dangers for the uninitiated or undisciplined.
So while fortune favors the bold in meme coin spheres at present, understanding personal risk tolerance stays vital with hysteria accelerating globally. As Dogwifhat demonstrated this week, fortune and folly often stand divided only by razor-thin margins with these wildly volatile assets.
