In the fluctuating world of cryptocurrency, a noticeable trend has emerged, led by larger wallet holders. According to market analysis platform, Santiment, these influential players are sparking price breakouts across various memecoins, seemingly in an effort to create a Fear of Missing Out (FOMO) among retail investors, thereby boosting market activity and driving up market caps.
This phenomenon has been particularly evident in the memecoin sector, known for its inherent volatility. Large wallet holders have been actively targeting market caps of popular tokens, including Dogecoin (DOGE), Pepe (PEPE), Dogwifhat (WIF), and Bonk (BONK). By initiating mini breakouts, these investors set the stage for a bullish sentiment that entices retail investors to join the fray.
DOGE, the memecoin boasting the largest market capitalization, has demonstrated impressive performance since the November 5 crypto market breakout. Its price soared past $0.48 for the first time since 2021, marking a 241% rally. PEPE followed suit with a 243% surge, smashing through previous records to reach a new all-time high. WIF and BONK were not far behind, posting gains of 158% and 243%, respectively.
Santiment further highlighted that these large wallet holders are likely to capitalize on the current bullish trend. They anticipate these influential players to liquidate their positions once FOMO has sufficiently drawn in retail interest, a profit-taking strategy that could potentially cause a market retracement. However, some tokens such as PEPE continue to demonstrate strong momentum, hinting at the potential for continued upward movement despite this prediction.
The wider impact of these activities is evident in the varied performance of key memecoins. WIF, despite experiencing a significant retracement following its initial surge, has since regained its footing and resumed an upward trend. Similarly, BONK, after a post-rally dip, stabilized at $0.00004697, underscoring the dynamic and unpredictable nature of the memecoin market.
In the rapidly changing landscape of cryptocurrency, the role of larger wallet holders in influencer memecoin breakouts provides a fascinating insight into market manipulation tactics. As the market continues to respond and adjust to these strategies, both retail investors and market analysts will be keenly observing the outcomes.
