Dogwifhat (WIF) has quickly become the leading memecoin with a 12.34% price increase over the past 24 hours.
Despite the price increase, WIF’s weighted sentiment remains negative at -0.95, showing that the memecoin is not yet close to its potential peak.
A positive funding rate indicates that demand for long positions is increasing.
Such a massive surge in the token after a long period of slump raises questions about whether the current market sentiment towards WIF is justified.
Meme Coin craze hasn’t peaked yet
According to Santiment, the weighted sentiment for WIF is currently -0.95. The index takes into account the number of mentions of an asset and tracks whether it is expressed positively or negatively.
A negative weighted sentiment indicates that there are more pessimistic comments online, while a positive number means that the market is generally optimistic about price potential.
In the case of WIF, despite the negative weighted sentiment and recent price gains, this does not mean that the memecoin has peaked. This divergence between sentiment and price action shows that there is still room for further growth.
If market sentiment becomes overly optimistic while prices are rising, it could signal that WIF is about to face a major correction. However, in the current situation, the upward trend is likely to continue.
Despite the prevailing negative sentiment, traders appear to be positioning themselves for possible further price increases, as evidenced by the funding rate, which reflects the difference between the perpetual contract price of a cryptocurrency and the spot price.
