This meme coin rally clearly has legs. Three of the most high-profile meme tokens are absolutely rocketing higher in today's session, with Dogwifhat (CRYPTO:WIF), Bonk (BONK -6.82%), and Pepe (PEPE -5.18%) seeing gains of 20.4%, 9.1%, and 10.1%, respectively, over the past 24 hours as of 2:30 p.m. ET.
A good portion of the continued rally many of these more speculative meme tokens are seeing can be tied to an influx of capital into the crypto sector. From the top down, traders are looking to get back into this asset class, with many looking further out on the risk spectrum to try to capture as much of this momentum as possible.
However, each of these tokens is also generating buzz via its own idiosyncratic catalysts. Let's dive into what investors are watching and where all this momentum is coming from.
Investors finding reasons to buy into the hype
Many dog-inspired cryptocurrencies exist, but I must say that Dogwifhat's unique logo (a dog wearing a pink beanie) is something to behold. Aside from the insignia, investors appear to be paying close attention to the project's ongoing fundraising for an upcoming push to display the token's logo on the Sphere in Las Vegas.
To me, this catalyst brings back memories of all the Superbowl ads and stadium naming rights deals we saw during the peak of the previous meme token hype cycle. Those in the Dogwifhat community appear to be viewing this fundraising effort as a net positive, raising awareness for the project and worth the $690,000 in stablecoins currently raised for this endeavor.
Bonk is another Solana (SOL -5.22%) based meme token that's continued to generate a tremendous amount of buzz around various analysts touting technical price targets around the token. As one of the earliest meme tokens released on the Solana network, Bonk revitalized interest in Solana and its ecosystem of meme-inspired projects in 2022. This recent rally has coincided with Solana's recent move to a one-year high.
Pepe's recent move appears to be tied to whale activity (large traders placing massive orders), with a recent two-trillion PEPE order (worth around $20 million) placed over the past day.
Following the moves of other large traders is part and parcel of the speculative investing game, and meme token investors are clearly taking a liking to this transaction. With Pepe surging to all-time highs, this position appears to be in the green as more investors pile into this project, which is now the 36th most valuable in the crypto sector.
Will the party continue or is a hard landing in store?
Predicting the directional price action of meme tokens is something I find nearly impossible to do. Clearly, there's plenty of momentum in the market right now, and the near-term outlook based on speculation, hype, and technicals (three factors I don't believe in as long-term investing criteria) certainly looks positive.
But over the medium- to longer-term, these three tokens appear to have little value in my eyes. Any investor thinking about trading these tokens or investing for an extended period of time should do so with capital they're comfortable parting with. That's my take.