The Flow Horse, an anonymous cryptocurrency analyst, warned crypto bears that opportunities to push the market lower are diminishing. The analyst also predicted a rise in the Solana (SOL)-based popular memecoin dogwifhat (WIF).
“I Expect WIF to Rise”
The analyst highlighted WIF’s standout performance in the memecoin sector and expressed confidence in its continued strength throughout the bull market. They expect the strongest memecoins to retain their appeal and suggested that investing in WIF would be profitable, arguing that market dynamics will continue to support prominent altcoins like WIF despite the increase in new memecoins.
In their analysis, The Flow Horse acknowledged the nearly frictionless creation of new memecoins, leading to a significant increase in their numbers. However, they emphasized that capital tends to flow towards preferred altcoins despite this dilution. This indicates that standout memecoins like WIF will continue to attract investor interest and investment even in an oversaturated market.
As of the latest update, WIF is trading at $2.26, down 1.26% in the last 24 hours. On the other hand, data shows that WIF has risen by 20% in the last 7 days. This performance underscores the altcoin’s relative strength in the memecoin market and supports The Flow Horse’s bullish expectation.
Expects Crypto Market to Rise with Short Squeeze
Expanding their analysis to the overall cryptocurrency market, The Flow Horse warned that crypto bears face the risk of a short squeeze. This follows the recent rally in altcoins while Bitcoin (BTC) continues to consolidate above the $60,000 threshold. For those unfamiliar, a short squeeze occurs when traders who bet on a price drop are forced to buy back their positions as prices rise, pushing the asset’s price even higher.
The analyst noted that altcoins did not underperform Bitcoin during the recent market downturn, highlighting that many investors are taking long positions in altcoins and short positions in Bitcoin. With time running out for the bears, The Flow Horse believes a short squeeze is imminent, potentially leading to further rallies in the cryptocurrency market.
