Are Memecoins Primed for Profit-Taking Amid Strategic Whale Moves?

Santiment, a leading crypto analytics platform, has highlighted an emerging pattern in the memecoin market that suggests strategic activity among major holders.

Recent observations reveal that large wallet investors are driving small surges in the prices of various memecoins to set the stage for potential profit-taking.

The platform reported that prominent memecoins like Dogecoin (DOGE), Pepe (PEPE), Dogwifhat (WIF), and Bonk (BONK) have experienced mini rallies orchestrated by these influential wallets. The strategy appears aimed at drawing retail investors back into the sector by creating a Fear of Missing Out (FOMO) atmosphere. This renewed enthusiasm among smaller investors often leads to price spikes, which these larger holders capitalize on by selling their holdings, potentially triggering a market pullback.

🐶🐸😺 Meme coins are quietly having more mini breakouts this weekend. For coins like Dogecoin, Pepe, Dogwifhat, and Bonk, the larger wallets could continue to pump market caps longer until retail FOMO returns. Once the crowd catches wind and get greedy, the larger wallets sell… pic.twitter.com/KD9OeqnaBe

— Santiment (@santimentfeed) December 8, 2024

Dogecoin, the most prominent memecoin by market cap, has been riding the wave of the recent market rally, achieving a remarkable 241% surge since November 5. The token’s price surpassed $0.48, a level it hadn’t seen since 2021, and was trading at $0.4694 at the latest update from TradingView.

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Other memecoins have mirrored this upward trend. Pepe saw a dramatic 243% increase during the same period, even hitting a new all-time high after a 32% weekend jump. Despite Santiment’s warning of a potential retracement, Pepe’s strong momentum suggests it could push toward even higher price levels.

Meanwhile, Dogwifhat experienced a 158% rise following the November breakout but corrected significantly before resuming its upward movement. Similarly, Bonk, after a 243% rally, saw a dip before regaining traction, trading at $0.00004697 at the time of analysis. These patterns reflect the volatile yet calculated moves that define the current state of the memecoin market.

Alexander Zdravkov