The crypto meme coin category has come roaring back to life this week, led by eye-popping rallies for tokens like WIF, PEPE, SHIB and BONK. Speculative manias for these quirky assets tied to blockchain networks may be reviving – to the tune of average 13% gains across meme coins in just the past day.
TLDR
WIF has been the breakout star, with the Solana-based meme token exploding over 65% higher at one point early Tuesday. The surge means one lucky trader who bought $310 worth of WIF back in November is now sitting on a stack worth over $1.4 million.
The 4500x return in just three month is the stuff meme token dreams are made of. And yet despite unlocking life-changing money, this WIF whale wallet has continued holding onto the 2.58 million tokens. Clearly the overnight millionaire believes there remain even bigger gains in store judging by that diamond hand HODL strategy.
The huge upside demonstrates why speculative punts on meme coins tied to rising blockchain ecosystems can deliver outsized rewards. WIF is far from the only canine-themed token running wild either – BONK rallied 18% on its own Solana network as well.
Meanwhile PEPE powered 50% higher, with the iconic frog meme from Ethereum catching a bid. When niche meme assets start blasting off like this, it often foreshadows broader altcoin rallies playing out.
24 Hour Pepe Coin Price from Coingecko
And with Bitcoin suddenly surging back above $57k to its highest since 2021, animal spirit euphoria has definitely returned to crypto markets. Meme coin traders are likely trying to front-run gains by parking capital in these tokens that can deliver exaggerated upside during bull market runs.
Both BONK and WIF remain firmly bullish on the 4-hour timeframe per technical analysis. BONK in particular looks geared for a push towards $0.000026 next unless selling pressure ramps up. The Awesome Oscillator indicator also suggests WIF still has momentum pointing towards $0.70 despite RSI overbought signals.
Of course manias around essentially valueless meme assets never last forever. Several wallets already dumped $4 million worth of PEPE tokens to take profits off the table from its 50% breakout. And previous crypto bull markets saw similar cycles play out.
Once peak irrational exuberance gets reached at some point, gravity takes hold. Still, clever traders play the wave on the way up – then pivot to more sustainable, legitimate crypto assets before the music stops.
For those willing to set tight stop losses and watch closely, meme coin runs offer coattail riding opportunities.
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Author: Oliver Dale
