TLDR
Major memecoins including DOGE, PEPE, and WIF are seeing price increases while mainstream cryptocurrencies struggle
Whale investors are showing increased interest in memecoins, driving the current price surge
Analysis suggests DOGE could rise 18% to $0.58 if it maintains above $0.48
PEPE could see a 45% increase to $0.0000352 if it stays above $0.0000238
WIF may rise 25% to $4.60 if it maintains above $3.40
While major cryptocurrencies like Bitcoin and Ethereum face market pressures, the memecoin sector is experiencing a notable upswing in December 2024, driven by increased whale investor activity and technical breakouts across multiple tokens.
Data from on-chain analytics firm Santiment shows that large-scale investors, commonly known as whales, are moving funds into popular memecoins including Dogecoin (DOGE), Pepe (PEPE), and dogwifhat (WIF). This shift in institutional interest away from mainstream cryptocurrencies appears to be a key factor in the current price movement.
Meme coins are quietly having more mini breakouts this weekend. For coins like Dogecoin, Pepe, Dogwifhat, and Bonk, the larger wallets could continue to pump market caps longer until retail FOMO returns. Once the crowd catches wind and get greedy, the larger wallets sell… pic.twitter.com/KD9OeqnaBe
— Santiment (@santimentfeed) December 8, 2024
The price action comes as several memecoins break out of their previous trading ranges. Dogecoin, the largest memecoin by market capitalization, is testing key price levels that could lead to further gains. Technical analysis indicates that if DOGE maintains its position above $0.48 and successfully closes a daily candle above this threshold, it may see an 18% increase to reach $0.58.
PEPE, another prominent memecoin, is showing similar technical strength. The token is currently retesting a bullish flag pattern breakout. Analysis suggests that if PEPE holds above $0.0000238, it could experience a 45% surge, potentially reaching $0.0000352 in the coming days.
The newer entrant dogwifhat (WIF) has broken free from its recent consolidation zone. Technical indicators point to a possible 25% increase to $4.60 if the token maintains support above $3.40.
Market data reveals that whale investors are displaying strong confidence in these breakout patterns, contributing to the upward price momentum. Their buying activity has created noticeable price impacts across the memecoin sector.
The current rally appears to be primarily driven by institutional and whale investors rather than retail traders. This distinction is important as historical patterns show that whale-led movements often precede broader market attention.
Trading volumes across major memecoin pairs have increased, indicating growing market participation. This uptick in volume provides additional technical support for the ongoing price movements.
Bonk (BONK) and other smaller market cap memecoins are also experiencing price appreciation, suggesting the rally is broad-based across the sector rather than limited to a few tokens.
Price charts show that many memecoins are testing or breaking through key resistance levels that had previously contained price action. These technical breakouts are occurring against a backdrop of increased trading activity.
On-chain metrics indicate substantial whale accumulation in recent days, with large wallets increasing their positions across multiple memecoin projects.
The timing of this memecoin movement is notable as it comes during a period when traditional cryptocurrencies are seeing relatively flat price action. This divergence suggests a deliberate rotation of capital within the crypto market.
Trading patterns indicate that whales may continue their accumulation until retail interest picks up. However, Santiment data suggests that once retail buyers enter the market, whale investors typically begin to reduce their positions.
The price action is accompanied by increased social media activity around memecoin projects, though current metrics suggest retail speculation remains below previous peak levels.
Current market data shows these tokens retesting their breakout levels with sustained buying pressure from large holders.
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