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- Larger wallet holders trigger memecoin breakouts to create FOMO, boosting retail investor activity and market caps.
- DOGE and PEPE saw gains of 241% and 243% since November 5, while WIF and BONK experienced retracements after initial surges.
- Santiment predicts profit-taking by large wallets could cause a market retracement despite ongoing memecoin momentum.
Santiment, a market analysis platform, has identified a growing trend in the memecoin market involving larger wallet holders. According to the platform, these significant players are initiating price breakouts across various memecoins. This tactic appears to attract retail investors by creating a Fear of Missing Out (FOMO) atmosphere, boosting market activity.
🐶🐸😺 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
Large Wallet Holders Impacting Memecoin Momentum
Notably, the memecoin sector, known for its high volatility, has recently experienced notable gains. Large wallet holders have played a pivotal role in this by targeting market caps of popular tokens, including Dogecoin (DOGE), Pepe (PEPE), Dogwifhat (WIF), and Bonk (BONK). By driving mini breakouts, these investors appear to set the stage for a bullish sentiment that draws in retail investors.
DOGE, the largest memecoin by market capitalization, has shown impressive performance since the November 5 crypto market breakout. Its price climbed over $0.48 for the first time since 2021, recording a 241% rally. Similarly, PEPE surged by 243%, hitting a new all-time high, while WIF and BONK followed with gains of 158% and 243%, respectively.
Profit-Taking Strategies Spark Market Speculation
Additionally, Santiment noted that large wallet holders aim to capitalize on the current bullish trend. Once FOMO attracts sufficient retail interest, these players are expected to liquidate their positions.
Consequently, this profit-taking strategy could lead to a retracement in the market. Despite this prediction, certain tokens like PEPE continue to show strong momentum, suggesting the potential for further upward movement.
Mixed Performance in the Wake of Breakouts
However, the broader impact of these activities is evident in the fluctuating performance of key memecoins. WIF, after its initial surge, experienced a significant retracement before resuming an upward trend.
Moreover, BONK faced a similar dip following its rally but later regained traction to stabilize at $0.00004697. These movements highlight the dynamic and unpredictable nature of the memecoin market.
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