Meme coins have become a significant part of the cryptocurrency landscape. Projects like Dogecoin (DOGE) and its imitator Shiba Inu (SHIB) have come close to breaking into the top ten altcoins by market capitalization, competing with established players. As a result, “dog” coins are vying for more than just the status of being mere joke coins. However, they are now facing competition from other meme coins that are showing promising growth, such as Dogwifhat (WIF).
What is Dogwifhat (WIF)?
Dogwifhat (from the English “dog with a hat,” with the word “with” intentionally misspelled) is a meme coin that originated from a viral internet meme featuring 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 the project claims on social media that Dogwifhat was inspired by the leading meme coin, DOGE. The project has a capped supply of just over 998.9 million coins. There are no plans for additional staking or token burning. The developers assert that their project is fully decentralized: holders of WIF will determine its fate, which could potentially mean that the coin cap could be exceeded.
Since its launch, the coin’s price has skyrocketed, reaching a record high of approximately $4.8 on March 31, 2024. Currently, after some correction, WIF trades around $3. As of today, the market capitalization of the coin has surpassed $3 billion, placing it at 36th in market capitalization among other cryptocurrencies. The dog in a hat has outperformed Kaspa, Bittensor, and many other well-known tokens, coming close to Filecoin—a major project that decentralized stores exabytes of data.
The Success Story
In essence, there is nothing particularly special about Dogwifhat. It is a classic meme coin that seized the moment when Bitcoin was demonstrating significant growth. Thanks to the support from the meme coin community, Dogwifhat gained visibility, which, in turn, attracted the attention of long-term investors and traders. These investors then “pumped” the token. Notably, the creator of the coin seemingly underestimated the interest surrounding Dogwifhat, selling 350 million coins for $29,000 just a few days after WIF was listed. Today, selling the same amount of WIF would net him a billion dollars.
Overall, everything fell into place for Dogwifhat. At its launch in December 2023, one coin was priced at $0.001555. By early March, the price had risen to $1.5, and by the end of that month, a record was set at $4.8.
Expert Predictions
Predicting the price dynamics of a meme coin with no underlying value is a thankless and unreliable task. On the other hand, many speculators have likely come to love WIF for the profits it has brought them. Therefore, as long as it remains of interest to the market, trading will likely continue. Generally, you can find both positive and negative predictions. Some analysts forecast a rise to $6 in May, while more cautious voices advise approaching this coin with utmost care. The dynamics of meme coins are unpredictable. Interestingly, even the developer did not seem to have high hopes for this project, as he sold a third of the possible coins in the early days after the listing.
Technical Analysis
WIF is relatively new to trading. For instance, the session on the OKX exchange on May 13, 2024, was only its 28th. During this time, the coin exhibited impressive growth: it increased by nearly 60%, and at its peak on May 6, it exceeded 84%. It is too early to speak of an established trend. A 60% rise for a meme coin is typical, although, of course, speculative experts have likely made a nice profit. The RSI indicator stands at 56.42, indicating a bullish trend. This is also confirmed by the chart; however, it is essential not to jump to conclusions too quickly—there hasn’t been much time. Interestingly, despite the price increase, volatility is decreasing, as evidenced by the falling ATR indicator.
Continuation of the upward trend is expected if the resistance level of 3.681 USDT is breached. The next resistance level and target would then be the historical high of 4.86 USDT. Conversely, if the price falls below the support level of 2.737 USDT (the minimum from May 8, 2024), it would suggest that the bears have taken control.