Dogwifhat price pumps 5% ahead of possible Coinbase effect

Source Fxstreet
Apr 19, 2024 02:00
  • Dogwifhat price is up 5%, standing among top gainers in the meme coin sector as BTC hope restores.
  • Coinbase has announced plans to list WIF for perpetual futures trading starting April 25.
  • Altcoins experience a quick price pop after they are listed on the big US exchange Coinbase.

Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.

Also Read: WIF price rallies 60% as Dogwifhat’s photo sells as NFT for $4.3 million

WIF rises on Coinbase announcement

In a Thursday post on X (formerly Twitter), Coinbase Exchange, the largest US-based trading platform, revealed plans to list Dogwifhat ecosystem’s WIF token for perpetual futures trading on Coinbase International Exchange and Coinbase Advanced.

Expected to begin trading on April 25, the announcement could see the Solana-based meme coin display the “Coinbase Effect.’”

Coinbase Effect is an assumption, which has oftentimes been proven true, that up-and-coming digital tokens experience a quick price pop after they are listed on Coinbase.

Research by Messari cryptocurrency analysis firm corroborated the Coinbase effect, analyzing the first five days of trading after tokens are listed on Coinbase and comparing their performance when listed on peer platforms like Binance, OKX, and Kraken, among others.

Citing a Messari analyst Roberto Talamas in a 2021 newsletter post titled "The Crypto Exchange Pump Phenomenon,":

Coinbase listings have the highest average return standing at 91%, but also have the widest distribution of ranging from -32% to 645%.

If the 91% average return works for WIF, Dogwifhat price could go as high as to reclaim the $4.86 range high.

Dogwifhat price outlook amid expected WIF listing

Dogwifhat price remains range bound, consolidating between $2.15 and $3.14. With altcoins awaiting the BTC cues, a show of strength by Bitcoin price could see WIF price rally. In the meantime, bearish sentiment abounds amid elevated risk levels in the market, with BTC bulls still not showing a steady hand.

Notice the Relative Strength Index (RSI), however, which is teasing with a buy signal, pending execution once it crosses above the yellow band of the signal line. As highlighted in purple on the RSI chart, every time such a cross over happens, Dogwifhat price responded with a break out.

Furthermore, the histograms of the Awesome Oscillator (AO) are also turning green, suggesting a budding bullishness in the WIF market.

If bulls recover the market, key levels to watch for the Dogwifhat price include $3.14, $4.24, and $4.78. A strong move above these levels could see the meme coin reclaim the $4.86 range high target, nearly 91% above current levels.

WIF/USDT 12-hour chart

However, if Bitcoin price makes another swing low, effectively sweeping altcoins down, Dogwifhat price could also fall. A break below $2.15 could ensue, driven by the presence of the bears in the market. This is shown by RSI position below the ‘50’ mean level as well as the position of the Awesome Oscillator (AO) in negative territory.

Also Read: Dogwifhat crashes 60%, but here's why you should not buy WIF yet

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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