A well-known analyst is cautioning crypto bears, stating that their opportunity to drive the market lower is diminishing. The pseudonymous analyst, the Flow Horse, shared with his 220,100 followers on the social media platform X that he is optimistic about the Solana (SOL)-based meme token dogwifhat (WIF).
According to the Flow Horse, WIF stands out as one of the quickest movers in the memecoin sector, and he expects it to maintain its relative strength until the bull market concludes. “Re-buying WIF,” he says. “Claiming you’re no longer bullish on the strongest memes implies you believe the market participants have rotated out or their preferences have shifted. This is highly unlikely. More likely, WIF will persist until the cycle ends.”
The analyst also points out that despite the numerous memecoins released this year, traders will continue to favor those that distinguish themselves. “Unfortunately, there’s a significant amount of dilution because creating a meme now has no barriers. However, capital still gravitates towards a favorite,” he notes.
At the time of writing, WIF is valued at $2.30, having increased by over 14% in the past day. Regarding the broader digital asset market, the Flow Horse warns that crypto bears are at risk of a short squeeze, following a rally in altcoins while Bitcoin stabilized at $60,000.
A short squeeze occurs when traders who have borrowed an asset at a certain price, hoping to sell it at a lower price to profit from the difference, are compelled to buy back the borrowed assets as the momentum turns against them, thereby fueling further rallies.
The analyst comments, “Altcoins did not exceed Bitcoin during the last decline. Many traders are running long-short BTC/ALTs. Time is running out for bears before another squeeze happens.”
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