Memcoins have become a serious part of the landscape in the world of cryptocurrencies. Projects such as Dogecoin (DOGE) and its imitator Shiba Inu (SHIB) got as close as possible to the top ten altcoins by capitalization, competing with the latter. Therefore, "dog" coins claim to be something more than the status of exclusively comic coins. Although they also have their own competitors who demonstrate good dynamics — for example, WIF.
What is Dogwifhat (WIF)
Dogwifhat (from English: "dog with a hat", and the preposition "with" is intentionally misspelled) is a memcoin that arose thanks to a hype Internet meme about a Shiba Inu dog wearing a pink knitted hat. The WIF coin was launched on the Solana blockchain in December 2023. The founders remain anonymous, but on social media, on behalf of the project, they claim that they were inspired to create Dogwifhat by the main memcoin DOGE.
The project has a limited issue: in total, a little more than 998.9 million coins will be issued. No additional staking or token burning is planned. The developers claim that their project is completely decentralized: WIF holders will determine its fate themselves, which, by the way, may mean that the limit on the number of coins can be overcome.
Since the appearance of the coin, its value has grown rapidly, reaching an all-time high of about $4.8 on March 31, 2024. Now, after some correction, WIF is trading around $3. The market capitalization of the coin has exceeded $3 billion to date, and this is the 36th place in capitalization among other cryptocurrencies. The dog in the hat has overtaken Kaspa, Bittensor and many other well-known tokens. WIF is quite a bit short of Filecoin, a large project where exbibytes of data are stored in a decentralized manner.
A success story
In fact, there is nothing special about Dogwifhat. This is a pure "classic memcoin", which successfully caught the moment when Bitcoin showed good growth. Thanks to the support of the memcoin crypto community, Dogwifhat gained fame, which, in turn, attracted the attention of long-term investors and traders. The latter have "pumped up" the token.
It is noteworthy that the creator of the coin himself apparently underestimated the interest around Dogwifhat. He sold 350 million coins for $29,000 a few days after the WIF listing. Today, selling the same amount of WIF would bring him a billion dollars. In general, everything turned out too well for Dogwifhat: at the start of sales in December 2023, one coin cost $0.001555. In early March, the price rose to $ 1.5, and at the end a record was set: $4.8.
Expert forecasts
Predicting the price dynamics of a memcoin that costs nothing is a thankless and unreliable task. On the other hand, many speculators probably managed to love WIF for the fact that it brought them a lot of profit. Therefore, most likely, as long as it is interesting for the market, it will be traded.
In general, you can find both positive and negative forecasts. Some analysts predict a rise to $6 in May. The more cautious ones urge to approach this coin with maximum care. The dynamics of memcoins are unpredictable. Apparently, even the developer himself did not have high hopes for this project, as he sold a third of the possible coins in the first days after the listing.
Technical analysis
WIF has been trading relatively recently. So, on the OKX exchange, the session on May 13, 2024 became only 28. At the same time, the coin showed enviable speed during this time: the growth was almost 60%, and at the peak on May 6 it exceeded 84% altogether.
It is not necessary to talk about any established trend yet. A 60% increase for memcoin is a common story, although, of course, specialists in the field of speculation have already made good money. The value of the RSI indicator is 56.42, which should indicate the predominance of bulls. Actually, this is confirmed by the schedule, but again, you should not run far ahead — not much time has passed.
Interestingly, despite the price increase, volatility is falling. This is evidenced by the drop in the ATR indicator.
The continuation of the upward trend should be expected at the breakdown of the resistance level — 3,681 USDT. Then the next resistance level and the target will be the historical maximum — 4.86 USDT. If there is a drop below the support level of 2,737 USDT (minimum from May 8, 2024), then it will be possible to conclude that the bears have seized the initiative.
Source: tradingview.com
Conclusion
Dogwifhat is a classic meme cryptocurrency that competes with older projects like DOGE and SHIB, and also belongs to the "dog" coins. As for cost forecasts, it will be possible to talk about the continuation of the upward trend in the long term only after overcoming the level of the historical maximum.
This material and the information in it do not constitute an individual or other investment recommendation. The editorial board's opinion may not coincide with the opinions of the author, analytical portals and experts.