Meme coins are quietly gaining momentum this weekend, with tokens like Dogecoin, Pepe, Dogwifhat, and Bonk experiencing mini breakouts.
Larger wallets, or “whales,” appear to be driving market caps higher, potentially sustaining the trend until retail investors succumb to FOMO (fear of missing out). Historically, such scenarios often lead to a market retrace as whales sell off their holdings once retail demand peaks.
https://twitter.com/santimentfeed/status/1865621956399153273?t=xGmiwHJK3yJguI-JZg-VAw&s=19
Since March 2024, a specific group of six trading bands has collectively secured profits of $930,000 from this strategy. One prominent address has become known for its well-timed trades, capitalizing on market dips and rebounds. The wallet consistently buys WIF tokens at low prices, withdrawing them from Binance to build a position. After waiting for the price to rebound, the tokens are recharged back to Binance for sale.
This pattern continued 45 minutes ago when the wallet initiated a new round of trading. The address withdrew WIF tokens valued at $3.4 million from Binance at an average cost of $3.63. If the historical trend repeats, the trader could be setting up for another profitable exit following a price surge.
As meme coins draw more attention, their market dynamics remain highly influenced by these large wallets. The cycle of whale-driven accumulation, price pumping, and eventual sell-offs serves as a cautionary tale for retail investors. While the potential for quick gains can be enticing, market participants should remain vigilant about the volatility and risks associated with these tokens.
For now, the spotlight remains on these whales and whether their activity will trigger the next wave of meme coin euphoria—or mark the beginning of another retrace.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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The post Meme Coins See Weekend Mini Breakouts As Whales Stir Market Activity appeared first on The Merkle News.
