- The value of the meme coin market has skyrocketed in the past 24 hours.
- DOGE and WIF have logged double-digit price rallies during that period.
The meme market has witnessed significant growth in trading activity in the past 24 hours after GameStop stock trader Keith Gill posted on his Roaring Kitty X account for the first time since 2021.
pic.twitter.com/YgjVqtgcNS
— Roaring Kitty (@TheRoaringKitty) May 13, 2024
The image of a man holding a controller and sitting focused on a chair caused GameStop’s stock to surge by more than 100% in the 24 hours that followed.
By noon on the 13th of May, trading of the stock had been halted several times to curb market volatility.
The rally in GameStop’s stock led to increased activity in the meme coin market.
According to CoinMarketCap’s data, in the last 24 hours, trading volume in that market totaled $8 billion, having grown by over 170%.
The sector’s market capitalization also increased by 10% during the same period.
DOGE and WIF head in different directions
In the last 24 hours, the values of leading meme assets Dogecoin [DOGE] and dogwifhat [WIF] have grown by double digits. While DOGE has seen a 10% price rally, WIF’s value has climbed by 11%.
As of this writing, DOGE traded at $0.15. Its double-digit rally in the past 24 hours caused its price to bounce off support at $0.14 as the bulls attempt to reclaim the resistance price level of $0.16.
However, for this to happen, demand for the meme coin has to be sustained.
Readings from the coin’s key momentum indicators observed on a one-day chart showed that DOGE’s market was yet to be flush with demand.
At press time, its Relative Strength Index (RSI) was 49.84, below the 50-neutral spot. Likewise, its Chaikin Money Flow (CMF), which measures the flow of money into and out of the asset, was at its zero line.
The values of these indicators showed that despite the price hike in the past 24 hours, market participants’ demand for DOGE had yet to exceed its distribution.
Source: DOGE/USDT on TradingView
On the other hand, WIF fared considerably better. As of this writing, its key momentum indicators rested above their respective center lines.
Its Money Flow Index (MFI) was 66.61, while its RSI was in an uptrend at 52.68. These values signaled that the meme coin’s accumulation was beginning to gain momentum.
Further, WIF’s 11% gains in the past 24 hours have pushed its price above the 20-day simple moving average (SMA).
Source: WIF/USDT on TradingView
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When an asset’s price rallies above this moving average, it signals the beginning of a bullish trend in the short to medium term.
It often means that buyers have regained control, and the asset’s price is trending upwards.
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